蘑菇AV

Thousands of users saw $0 balances or couldn鈥檛 access accounts. With no clear explanation from BofA, the bank risks losing customers.

But there are also risks when rolling out digital capabilities if users can experience 鈥渄igital friction,鈥� per PYMNTS. The catch-22: We know that 36% of US banking customers assess financial institutions鈥� (FIs鈥�) online and mobile banking capabilities before choosing where to bank. But if FIs鈥�  digital tools are glitchy or aren鈥檛 user-friendly, they can actually lead to attrition.

Although every app category will gain users in 2023, the average smartphone owner will install and open fewer individual apps as consumers settle on their favorites.

An intuitive user experience. Marketing takeaways: Big banks expanding their business solutions are well-positioned to attract these young business owners. They鈥檙e also most likely to benefit from heirs鈥� tendency to stick with the bank their parents鈥� business already uses, much as they do for their own personal banking.

Among app users, 22% feel it takes too long to get approved and start using their account, according to the PYMNTS.com survey. Baking funding options into the application process cuts down on this frustration and paves a smoother path to usage post-approval. The Most Important Feature to Add.

When compared with the average consumer, more Gen Zers value mobile banking alerts that notify them when spending passes their budget in a chosen category, per our September 2024 US Mobile Banking Emerging Features survey. Providers can spur Gen Z credit card usage by prioritizing rewards and payment flexibility.

Mobile P2P payments are reaching market maturity in the US as spending soars, but security challenges threaten to reverse gains. Providers are working to assuage consumer fears while adding a robust array of features to tighten user relationships.

Mobile banking increases the risk of hasty financial decisions. There will be 170.0 million US mobile phone banking users in 2023 and 201.0 million adult social network users. That suggests that millions of consumers will be able to make hasty, on-the-go financial decisions after hearing bad news on social about their bank. Messaging must be rapid in response to pressing concerns.

This year will push fintechs to their limits, as regulators, consumers, and investors demand change. Those that can meet heightened demands will be rewarded with a larger share of the pie.

蘑菇AV one-third of US mobile banking users called debit rewards 鈥渆xtremely valuable,鈥� but just five of the country鈥檚 top 20 financial institutions offered them via app as of last September, per our 2022 US Mobile Banking Emerging Features Benchmark study. Merchant-funded programs could help deliver new benefits, especially if they leverage customer data to personalize perks.

Recurring payments for Apple Cash can boost engagement and lure new users.

More than half (55.7%) of Gen Zers prioritize mobile banking as a top factor when choosing a bank. Continuously improving tech means competition is fierce. Big tech is looming. Gen Z trusts Apple just as much as their primary financial institution for their banking needs.

Looking at some of the numbers for digital banking users in the US as a shared population, millennials, 90% Gen X, 85%, boomers, further back, 67, Gen Z, about half of them. But then if you go to mobile banking users, those discrepancies are much more pronounced. 87% for millennials. And you have to go all the way back to 62% for Gen X, 55 for Gen Z, the youngest, and then 40% for baby boomers.

Users don鈥檛 have the bandwidth to try to figure out a mobile banking app鈥攑articularly if a competitor鈥檚 advertising user-friendly options.

Interestingly as well, so this younger generation will overtake Gen X in terms of mobile banking users, total users, by 2025. And like I said, some of these folks are preteen. I guess by 2025, they should all pretty much be in their teens. But still, I thought that was quite interesting. All right, move to our second question.

By the numbers: Respondents were generally satisfied with their financial institutions (FIs), but many feel the way banks interact with customers needs improvement. 89% of respondents were satisfied with their primary bank鈥檚 ease of service and mobile banking solutions. 41% of baby boomers and Gen Xers, 48% of millennials, and 56% of Gen Zers interact with their bank鈥檚 mobile app or website daily.

Apple鈥檚 headline-grabbing buy now, pay later (BNPL), savings, and credit card products are just one part of the threat it poses in consumer banking: Its digital platform delivers an almost unbeatable user experience (UX) and is tailor-made for Gen Z. Banks must adapt quickly or risk losing market share.