The arrival of 2021 has brought handfuls of studies, all of which highlight exponential growth in the use of the technology spurred by the pandemic. Among these was a study published by JPMorgan Chase, which presented new data showing how many people are using digital features across the financial industry.
To continue the theme, the New York-based mega-bank delved into the topic this year and found almost nine out of 10 people deposit their money at their financial institution via their mobile phone. The results come from a survey of more than 2,000 people aged 18 to 57 and over. The investigation took place in late April and was released in August 2021, which Chase confirmed with The financial brand made up of non-Chase consumers.
( Dig deeper: How mobile deposits are broken (and how to fix them))
For better or for worse, the pandemic has changed the number of global banks. In January 2021, these factors were pushing people towards digital banking.
As the impact of Covid-19 begins to stabilize in the United States – more of the country is getting vaccinated, which is seen as a sign of hope, even as the Delta variant spreads – the tools digital banking that people depended on in 2020 seem to be a staple in their banking habits. The Chase survey confirms the theory: Consumer interest in financial institution technology continues.
Food for thought:
Almost 90% of people surveyed by Chase say they deposit their money through their financial institution’s app. Is your financial institution’s mobile game meeting consumer demand?
Money is still on the critical list
Just as streaming replaced Redbox, which revolutionized DVD, which had already replaced the VCR tape, payment services quickly shifted from cash to contactless cards on people’s cell phones.
A spokesperson for Chase said the company noted that cash, although used less frequently, remains “an important form of payment for many of our customers.”
However, even though the country is getting vaccinated, it seems people still don’t want as much money in their wallets as they did before. 13% of Baby Boomers and Gen Z say they “wouldn’t feel comfortable using cash, even after the pandemic,” according to the Chase report.
As a result, many industry experts see contactless payments as the wave of the future. Almost half (47%) of consumers surveyed across generations say they have started and / or continued to use these mobile options just to avoid physical interactions. Almost three quarters of those surveyed consider them to be a more convenient means of payment.
( Read more: Failure of Mobile Banking Apps in Key Areas of Customer Experience)
Chase expects these forms of contactless payment will only increase in popularity, the company spokesperson said.
“Our customers are increasingly using Zelle to send money or to share the cost of bills through our mobile app or on Chase.com,” the spokesperson said. For context, they explain that Zelle’s network of hundreds of banks and credit unions “processed 1.2 billion transactions in 2020, for a total of $ 307 billion sent, an increase of 58% and 62 % from one year to the next “.
At the same time that Chase released its survey, Bank of America announced that 85% of its deposits were made digitally in its fiscal second quarter of 2021. The bank boasted that in early July, seven customers on ten from Bank of America were using digital channels to meet more of their needs.
“We offer the best financial technology to help improve the financial lives of our customers,” said David Tyrie, chief digital officer at Bank of America. “To elevate each customer’s digital journey throughout their relationship with us, we focus on their unique needs and aspirations so that we can deliver personalized digital experiences. “
The ‘branch or no branch’ argument, which lasted for years before Covid, has intensified in the wake of the pandemic and global shutdowns. Even when the US banking industry thought it was witnessing the start of the end of the Covid-19 pandemic, consumers still relied on the mobile apps of their financial institutions. As previously mentioned (and in line with news from Bank of America), Chase says that almost 90% of people use a mobile app to deposit their money, with more than half (52%) of baby boomers Doing so.
Don’t fall prey to:
Regardless of the pandemic situation in the United States, people will never stop expecting high quality mobile banking apps.
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Personalization is essential
Unsurprisingly, people favor personalization. Who is going to claim that an individualized experience wouldn’t matter when interacting with their financial institution, whether online or in person? However, there are touchpoints in their banking journey where consumers want even more customization.
For example, Chase found that almost one in two people (48%) want their banking providers to incorporate more personalized information about banking data (such as saving and spending habits) into their customer strategies. And 79% of Gen Z – whom the banking industry is desperately trying to better understand – say they would like their bank or credit union to provide them with more personalized offers and information. they can save at their favorite retailers. (Compare this result to 41% of all respondents).
( Learn more: Bank of America seizing Gen Z and Gen Y in 3 with mobile)
To meet this demand for more personalization, many financial institutions are trying to merge AI solutions with their digital banking systems. Yet it is essential that banks and credit unions focus not only on technology, but also on the customer experience. For example, in a new study focused specifically on Georgia bank customers, Foresight Research suggests that consumer adoption of AI technologies will not be easy.
However, the report also notes that people who are already satisfied with their financial institution’s performance in automated financial advice and problem solving will be more likely to be comfortable with AI software. “The overall customer experience appears to be a prerequisite for adopting automated banking services,” suggests Foresight.
Ultimately, banks and credit unions will need to use AI in their banking strategies to maximize the customer experience, the Chase spokesperson said.
“Machine learning and artificial intelligence are fueling many of our personalization efforts today,” added the spokesperson. “For personalization to be useful, financial institutions must present their customers with actionable and easily digestible information. “
All about these savings
Just as the 2008 financial crisis instilled fear in consumers, the 2020 Covid-19 pandemic increased consumers’ dependence on the savings account.
Chase said in his 2020 Digital Banking Attitudes Study that 40% of people said they “look forward to contributing more to their savings accounts in 2021,” as financial institutions are also starting to invest in more funds. automation tools.
Auto-save features could be a saving grace for people if concerns about the Delta variant’s influence in fall 2021 are confirmed, especially if the United States experiences a second wave of shutdowns. 84% of people say they use these automated tools to save money, and the trend will only get worse.
Additionally, as more and more consumers turn to mobile banking apps as their primary channel, they are able to check their balances daily and track their spending habits. This new luxury is helping people save – over 40% of people say seeing their debit and credit card usage encourages them to better understand their cash flow.