Consumers are becoming increasingly reliant on mobile banking with 62% saying they can’t live without their mobile banking app, and 78% using it weekly, a new survey from Chase has revealed.
It finds that banking app users are doing more than just transacting and the majority would prefer one app to manage all their money needs. The survey also shows increased interest in financial health tools like credit monitoring, budgeting and saving, especially among younger consumers. The findings are part of the Chase Digital Banking Attitudes Survey, a yearly consumer study that started in the pandemic to learn more about consumer digital banking preferences.
Among its findings, 86% of consumers said they prefer to use one app for all their banking. This theme also extends to travel with 38% of consumers saying they prefer to book their travel from one place. Nearly 60% said they would consider using their banking app to pay an auto loan.
Financial health tools important for younger generations
Unsurprisingly, Gen Z and Millennials banking app users are most engaged in using financial health tools like credit monitoring, budgeting and savings features. The survey finds that younger generations are using digital tools to help manage their credit score, budget and save more than most consumers. On average, 18% of Gen Z and Millennials use a banking app to set savings goals, 17% create and track their budget from their app, and 16% use it to forecast their monthly spending. Sixty-two percent of all consumers said they set up alerts online or via a mobile app to protect themselves against fraud and scams, up from 54% in 2020.
P2P trumps cash for sending money to family and friends
Additionally, two in three consumers said they use their banking apps to send money to family and friends. Sixty-four percent of consumers use P2P methods to send/receive money from family and friends, compared to only 22% who use cash. In particular, consumers use P2P methods most often to split the cost of groceries and restaurant bills (36%), followed by Rent (19%), Electric Bills (19%), Home Repairs (8%) and Mortgage payments (7%)
“Everybody is using their phone these days to do absolutely everything, and banking is no exception. Customers are using their phone to manage their accounts, book travel, and redeem points and this trend will persist,” Sonali Divilek, Head of Digital Products and Channels at Chase said.
