Snippet: In 2020, for the first time ever, banking apps have overtaken all other banking channels as the one that survey respondents say they use the most. In this article we share highlights on how central banking apps have become to consumers’ financial lives in the wake of the pandemic.

Adoption of mobile banking apps inches up ever slower in the United States. What can be done to encourage use?

In 2020, for the first time ever, banking apps have overtaken all other banking channels as the one that survey respondents say they use the most. This includes online banking, which has outranked apps for years. The COVID-19 pandemic has been credited with much of this increase: 51.1 percent of all U.S. consumers now regularly use banking apps – 8.7 percent more than the share that did so in 2019. This highlights how central banking apps have become to consumers’ financial lives in the wake of the pandemic. However, not all users are satisfied with mobile banking and have stopped short of making the transition.

So, what can financial institutions do to help convince these holdouts?

To help answer this question, PYMNTS.com surveyed, on Entersekt’s behalf, 2,581 US consumers to find out how their mobile banking app use has changed over the past year, to what extent this shift results from the pandemic, and why some consumers are not using banking apps. One of the findings was that usability, security, and fraud are big drivers of dissatisfaction, and our report goes into more detail describing how the reasons cited for not using banking apps differ between generations. (Our own US consumer survey, conducted through the Harris Poll in 2019, is bursting with insights too!)


Why some consumers do not use banking apps

 

With this shift in consumer behaviour towards mobile banking, financial institutions that continue to grow their customer base and revenue are focusing closely on their customers’ needs and motivations. Our blog post, Banking apps: How some banks are getting it right, explains how to win in this digital era.

Improving the banking app experience to expand adoption

The survey highlights many aspects of the banking app experience that financial institutions can improve to expand adoption and drive usage of their apps, and it’s well worth their while to do so. For example, there are 112.6 million US consumers who do not use banking apps, 42.2 percent of whom don’t use them because they’re dissatisfied with the user experience for certain transactions. If banks make it easier for their customers (taking into account the preferences of all demographic groups) to perform these transactions via their apps, they could pick up 47.7 million new banking app users!

 


To find out what the satisfaction and dissatisfaction drivers are, and what financial institutions can do to boost banking app adoption, download the report.

 

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Lelanie de Roubaix

VP MARKETING RESEARCH & COMMUNICATIONS

Research and communications are not only two of Lelanie’s areas of expertise, but passions as well. She heads up Entersekt’s marketing communications team and is the company’s go-to person for industry and market research. A perpetual learner, Lelanie’s thirst for knowledge and sense of curiosity matches her perfectly to the dynamic fintech industry.

 
Survey report: Mobile banking app
 

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Entersekt is an innovator of customer-centric fintech solutions. Financial services providers and other enterprises rely on our patented mobile identity system to provide both security and the best in convenient new digital experiences to their customers, irrespective of the service channel. With us, they can concentrate on their innovation roadmap, while delivering intuitive, low-friction digital experiences to their customers.