eMarketer recently released a statistical forecast for mobile phone device use in relation to banking within the United States. This prediction projects that almost 59% of mobile phone users aged 18 to 34 will access banking data using their phone. To be more precise, the research suggests that this population will use their mobile browsers, apps or SMS on their phone to connect with their bank, brokerage account, credit card provider or credit union. This prediction is particularly striking when compared to the estimates for the baby boomer population. For that generation, less than 28% of the segment of baby boomers who use mobile phones will utilize mobile banking in 2015.
Real-Time Access: An expectation, not a privilege
According to eMarketer analyst Bryan Yeager, “Having real-time mobile access to personal financial information is a baseline expectation among millenials today…” Acknowledging and understanding this expectation of this population can assist in explaining why this behavior is so popular among this age group.
The importance of Security
There are certain reasons why the older generation has not yet adopted the habit of practicing mobile banking. A large part of this reluctance is due in part to security concerns – fears which are not unfounded in light of ongoing reports of system hacking even into larger banking entities.
Although this is a major stumbling block for older members of the population who use mobile devices, banking and financial institutions are aware of the growing importance that theses mobile platforms play for clients engaging with their products and services. Although the desktop experience is still providing values to a significant number of online banking users, there is a very distinct trend pushing towards mobile devices.
This means that these financial institutions are investing in developing their apps and sites as these become the likelier primary points of contact for the customers.
In addition to recognizing the current and projected value of these digital platforms for the user, Yeager claims that these institutions are, “… also experimenting with ways to cross-sell other relevant financial products, upsell to premium services and even acquire new customers entirely through the mobile channel.”
Growing Number of People Bank Digitally
By the end of 2015, eMarketer suggests that 74.2% of US adult millenial internet users will bank digitally (via any device) whereas 59.4% of baby boomer internet users will bank digitally using any device.
When looking at the actual and projected numbers between 2014 and 2019, it doesn’t look as though these numbers will be growing exponentially, instead it seems as though they will instead be growing incrementally.
While this research shows a significant between how baby boomers and millenials approach various financial and banking services, this data also reveals an ongoing trend which pushes all demographics towards online platforms. While some may wonder what will happen to the stragglers who refuse to take their banking interactions digital, a quick perusal of these stats suggests that there is no way to stop this movement towards all things digital in your banking experience.