One in Four Consumers Willing to Pay for Mobile Banking
Mobile banking apps are becoming an increasingly important feature in the financial industry, and for the most part, they are completely free to use. However, new data from SNL Financial indicates one in four consumers would pay for mobile banking if their banks decided to start charging for it.
The group asked nearly 4,400 consumers in the United States one simple question: “If your bank charged $3 a month to use its mobile bank app, would you pay to keep using the bank app?” 24% said yes.
There was a significant difference by age group: the older the consumer, the less willing to pay a fee for mobile banking. 32% of older millennials (26-35 years old) were willing to pay $3 per month but only 22% of baby boomers (48-66) and 17% of seniors (67+).
Gender differences were apparent. Males were more likely to be willing to pay a fee (27%) than females (21%).
There was also a wide discrepancy in bank customers. Certain banks did better than others with regards to how many customers would be willing to pay for an app. 33% of Bank of America customers said they would pay $3 a month, while only 18% of Capital One customers would absorb this fee.
It should be noted that 76% of consumers said they were not willing to pay $3 a month for mobile banking. Charging for this service may actually cause a bank to lose customers in the long run. But the willingness of nearly one-quarter of consumers to pay a fee for mobile banking may be something to watch out for in the future.
Another study from earlier this year showed 56% of bank customers consider the availability of a mobile banking app important when opening a new checking account. 80% of banks and credit unions currently offer mobile check deposits and basic account management solutions through free phone apps, and that number is expected to grow in the coming years.