Digital Banking in the U.S. is estimated to surpass US$4.3 Billion in 2021.
As a result of the COVID-19 pandemic, more consumers are relying on mobile banking tools to manage their savings, and digital banking technology has become part of their lives. Among the survey’s findings, 41% of respondents said their bank should offer them more personalized services and offer financial advice on how to save money. The demand is especially high among Gen Z clients; 79% said they wanted more information and personalized service.
In part, the pandemic may be responsible for the increase in the popularity of mobile services. A recent 2020 survey found that 13% of customers used digital payment tools because paper money and physical cards were avoided and going to the bank is time-consuming. With time, people’s attitude towards physical money has become more pessimistic. A survey conducted in April 2021 revealed that 13% of respondents would not feel comfortable using cash after the pandemic.
The rise in digital banking is likely to continue long after the pandemic ends. Increasing numbers of customers now manage their finances completely online. Another nice touch is an easy-to-use online banking platform that focuses on the user experience to make banking as simple as possible. In general, online banks tend to offer better interest rates. Since they have fewer expenses than traditional banks, no buildings, etc., they can tend to pass a little more of the savings along to the customer. Many online banks offer fewer to no fees, which means you can earn a much higher interest rate. In addition to these advantages, they also have access to online customer service all the time.
As a way to increase revenue and attract new customers, digital banking is gaining popularity. The mobile channel is a key differentiator for many banks and Fintechs since customers can access a wide variety of banking products and services anywhere and at any time through this channel.
Additionally, financial institutions view mobile platforms as a necessary service to compete effectively on the market. Bank-related functions, such as checking balances, are increasingly performed using mobile devices. Banks can reduce call center costs by reducing transaction times and costs and by ensuring that a customer’s needs are met.