Every Year, Mobile Banking Gains Popularity

With the global expansion of cell phones, the phrase “Mobile Banking” has gained prominence in recent years. The phrase isn’t specifically related to any technology; rather, it’s used to refer to a number of ways to utilise your cell phone to carry out various banking operations, including checking balances, moving money, and making payments. Some mobile users conduct their banking transactions using text messages, while others use smartphone browsers to access their bank’s online banking website, and still others use mobile applications designed specifically for their bank. Whichever approach is chosen, the overarching trend is that mobile banking is becoming more and more popular across all demographics.

The Consumer Research Section of the Federal Reserve Board’s Division of Consumer and Community Affairs, or DCCA, created a survey and report at the end of 2012. It was an extension of a similar study conducted the year before. According to all research, smartphones are growing more and more common in the United States, and as a result, mobile banking is becoming more popular. The apparent explanations are that Smartphones are a sensible choice for managing your finances because of their portability and convenience. Even for inexperienced users, it is now even easier to access and navigate thanks to more banks offering apps for mobile consumers on a number of devices.

How many mobile users bank using their devices?

In the United States, 87 percent of adults own a mobile phone, and 52 percent of them have internet access—technologically known as smartphones. Banking can be done via text message on mobile devices without internet connection, but according to the survey, smartphone users are significantly more likely to use banking applications than those with non-internet-enabled devices. Although mobile banking is used by 48% of Smartphone users, just 28% of mobile users as a whole use their phones for banking. Even that percentage is increasing, having increased from 21% at the end of 2011. The trend will undoubtedly continue, as indicated by the additional 10% of cell phone users who said they most likely will start in 2013.

Who is most likely to bank over the phone?

Compared to their older counterparts, younger mobile phone users are far more likely to adopt mobile banking, with over 38% of those between the ages of 18 and 29 doing so compared to just 8% of those over the age of 60.
A person is more likely to have banked on their phone the greater their family income, with those making over $100,000 annually using it at a rate of 28% compared to those making under $25,000 annually at 16%.
Education also affects banking on a mobile device; whereas 37% of college graduates and less than 6% of those with only a high school diploma have done so, respectively.

Why isn’t mobile banking more popular?

There were 2 main factors that respondents who did not use mobile banking frequently cited. The most common reaction was that alternative banking options were more practical and handy, and the client could not see any benefit to beginning phone banking. Concern for the security of their data and finances was the second most frequently cited explanation. Mobile banking applications actually provide a high level of security thanks to data encryption, rigorous user verification, and connectivity restrictions. If you have questions regarding the security of the mobile app for your bank, you can visit their website or speak with a bank representative to get more information.

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