A greater share of consumers are banking via mobile channels than before the pandemic, according to a study conducted in early October by data intelligence agency Morning Consult on behalf of the American Bankers Association.
The report found that more than half of three generational cohorts — Generation X, Millennials and Generation Z — now use mobile banking apps most often. Millennials and Gen Z already were close to that mark, with 45 percent and 48 percent of respondents primarily using mobile pre-pandemic, respectively; those numbers are now 55 percent and 56 percent. Gen X saw a huge increase, to 51 percent from 36 percent. Baby Boomers also embraced banking apps, overtaking branches as the second-most popular channel; 29 percent reported app usage as primary, up from 20 percent pre-pandemic. Online remains at the top for Boomers, increasing to 38 percent from 34 percent.
“Digital banking was on the rise long before Covid-19, but the growth in mobile app use accelerated as the pandemic made in-person banking more challenging,” said Rob Morgan, ABA’s senior vice president of innovation strategy. “Today’s banking apps are extremely sophisticated, and this survey shows that many consumers who try them quickly make mobile their banking method of choice.”
The survey noted a corresponding drop in branch usage as the primary means of banking after many physical offices closed during the pandemic and more services became available digitally. The poll included a national sample of 2,201 adults reporting on their primary banking channel before and after the start of the Covid-19 pandemic. Overall changes across the six channels track include:
- Mobile usage had the biggest increase, climbing 11 percentage points to 44 percent
- Branches unsurprisingly fell, dropping to 10 percent from 21 percent
- Online usage was only up two percentage points, to 26 percent
- Telephone and mail both saw slight increases, moving to 7 percent from 6 percent and to 3 percent from 2 percent, respectively
- ATMs had a small decrease, to 8 percent from 11 percent