Huge Increase in Mobile Banking Usage
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Nearly half (46%) of Americans, including 62% of Millennials, have increased their mobile banking usage in the past year, according to Citi’s 2018 Mobile Banking Study. Most consumers (81%) are using these apps nine days a month, while almost a third (31%) are using them 10 or more times each month.
The survey, which compiled responses from 2,000 U.S. adults, also found mobile banking is the third-most popular type of app behind social media (55%) and weather apps (33%), as 31% of the respondents use mobile banking apps.
Many consumers would also like to see mobile banking replace traditional banking and payments. Nearly all respondents (91%) said they preferred using their app over going to a physical branch, and 68% of Millennials who use mobile banking would like to see smartphones replace their wallets.
While many are turning to mobile banking for convenience, there are a number of other benefits as well. Alice Milligan, Chief Digital Client Experience Officer, U.S. Consumer Bank at Citi said it can also make consumers more responsible.
“Apart from offering consumers convenience and time savings, mobile banking has a clear correlation to financial awareness and wellness. The Citi Mobile Banking Study showed that 95% of mobile banking customers are confident that they know the exact balance of their bank account vs. 85% of non-mobile banking users. Also, nine out of 10 respondents have experienced additional positive outcomes from mobile banking, including greater awareness of their financial situation; fewer concerns about managing their finances; and a better understanding of the services offered by their bank,” Milligan said.
Mobile banking is also safe, even if you lose your phone. Citi, for example, takes a number of precautions to protect your data.
“At Citi, we use a variety of features to protect customers’ information while they are banking with their mobile device including 128-Bit SSL Encryption, biometric login options, additional authentication for sensitive or high risk transactions, session timeouts etc. In addition, the Citi Mobile App doesn’t store personal account information on mobile devices, so accounts are not exposed if phones are lost or stolen,” Milligan added.