With much of America open for business despite the continued coronavirus threat, it appears as if some people are starting to come back out of their bunkers to do their banking.
While 59% of Americans do the majority of their banking online, there has been a slight downward trend overall likely as more and more Americans have ventured out into public. This is following a sharp rise in online banking during the thick of the lockdowns.
Americans who think the pandemic will last at least six more months are nearly 20% more likely to do the bulk of their banking online compared to people who think this will be over by springtime.
What the coronavirus has done to someone’s job also plays a role, with nearly 3 out 4 people who are working the same as usual – but remotely – reporting they use online banking as their main banking method. What’s important to note here is “remote” work almost certainly entails computer work.
And familiarity with digital devices – and time spent on them – serves as a clear marker as to whether someone will choose to do their banking online.
For instance, people who report doing the majority of their non-grocery shopping online are more than 50% more likely to do the majority of their banking online than people who do the majority of their shopping in-store.
This tech trend continues across other aspects of life. People who play fantasy sports – an online activity – are 16% more likely to do the majority of their banking online.
Time spent on social media also shows a wide gulf, with people who spend 2+ hours a day on social media being 63% more likely to do the majority of their banking over the internet.
The use and comfort around the online world is even more stark when age comes into the equation, as the 25-54 age group is the most likely – by quite a margin – to do the majority of their banking online. Gen Z – despite being digital natives – just aren’t there yet.
Income plays a major role as well, with people in households making over $50,000 significantly more likely than households making under that threshold to be doing the majority of their banking online.
Not only are many Americans going online for their banking needs, but more than a third of those people are using their smartphone to do so. Again, however, there was a drop-off in August likely because communities started getting back to some semblance of normalcy.
On the age and income front, Americans 25-34 are most likely to be using their mobile device for banking. Income also paints a different picture when looking at mobile versus online banking, as those making under $50,000 report using it most often.
Despite the rise in online banking over the years, Americans are still branch-happy, with 44% of Americans having accounts at at least two different banks, which is nearly 10% higher than Americans who only have accounts at one retail bank. And a little more than one in six Americans have no accounts with any retail banks.
On the digital front Americans have not yet widely adopted payment methods such as Apple Pay, Google Wallet, and PayPal. Nearly 9 in 10 Americans have more trust with retail banks than online-only operations.
While still trusting banks more than digital solutions by far, consumers in the 25-34 group show a slightly higher likelihood to trust a tool like Apple Pay before their traditional bank. Considering this age group is the most comfortable with online and mobile banking, their openness to a non-traditional banking tool makes sense.
Stay tuned for additional insights into investing and debt to be shared later this week.