More Americans Turn to Mobile Banking

More Americans Turn to Mobile Banking

November 7, 2016         Written By Bill Hardekopf

Significantly more Americans are turning to mobile and online banking, according to a recent study from the Federal Deposit Insurance Corporation (FDIC).

The FDIC National Survey of Unbanked and Underbanked Households found that, from 2013 to 2015, the percentage of Americans using online banking rose from 55% to 60%, and mobile banking use grew at an even faster rate, rising from 23% to 32%. The FDIC concluded that Americans, particularly the underbanked, appreciate the greater control and convenience offered by mobile and online banking.

The FDIC found nearly 20% of households were identified as underbanked, which they defined as households that “had an account at an insured institution but also obtained financial services and products outside of the banking system.” These underbanked households were more likely to use their mobile devices as their primary method of managing their accounts, because they saw significant benefits with these products, including reminders and balance alerts that helped them stay on top of their finances.

Because of the successes reported by underbanked households, the FDIC determined that mobile financial services can help consumers take control of their finances, and they believe these services can address some of the underlying issues that lead to consumers becoming “unbanked,” which means no one in a household has a checking or savings account. Many consumers become unbanked because they want to avoid unexpected fees and worry about low balances. More than 15 million U.S. adults are unbanked, which represents 7% of American households.

The report found prepaid card use is also growing in the United States. From 2013 to 2015, Americans who reported using prepaid cards in the previous 12 months grew from 7.9% to 9.8%. While unbanked households are generally more apt to use these cards, growth was seen across nearly all demographic and socioeconomic groups.



The information contained within this article was accurate as of November 7, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time