NEW YORK–A new survey of consumers, along with its own internal data, reinforces just how greatly the coronavirus has accelerated the adoption of digital banking technology, according to JPMorgan Chase.
In the second quarter of 2021, JPMorgan Chase reported almost 57-million "digitally active customers," an increase of 10% year-over-year, and nearly 43-million customers used the company’s mobile offerings, which also constitutes a 10% increase YoY.
According to Chase’s Q2 2021 earnings call, total digital transactions per customer grew 12% over the past year, Banking Dive reported.
The bank’s 2021 digital banking study found that a large chunk of consumers want more from their bank — 41% of respondents desired a more personalized banking experience and wanted their bank to offer financial information to help them save more money.
“This demand is particularly stark among younger clients; 79% of Gen Z respondents wished for increased personalization and information,” Banking Dive stated.
For the study, Chase surveyed 2,005 men and women, ranging in age from 18 to 57 or older, from April 23-26.
The Big Draw
In December 2020, Chase conducted another Digital Banking Attitudes Study, which surveyed 1,500 consumers.
Among that group, only half labeled Chase's mobile app a "must have." But in 2021, 89% of respondents used mobile apps to deposit money, including 52% of the Baby Boomers surveyed. Overall, 91% of men surveyed said they deposited checks through their phones, compared to 87% of women, noted Banking Dive.
In 2020, 13% of customers "cited avoidance of paper money and physical cards as one of their top three reasons for using digital payment tools during the pandemic,” the report stated.
According to Banking Dive, attitudes toward physical cash may have become even more pessimistic over the last year. In April 2021, 13% of respondents stated they would not feel comfortable using cash again, even after the pandemic.
The 2020 study also revealed that in Q3 2020 "more than half of customers [applied] digitally for mortgages, double the level from Q2 2019,” the publication stated.
Another Catalyst
“Another catalyst driving growth in mobile banking is that some customers believe mobile services like Chase Autosave help them to improve their saving habits,” reported Banking Dive. “According to the study, ‘41% of respondents believe seeing their credit and debit card usage, understanding their cash flow and reviewing their top sending categories would help them adjust their money management habits.’”
Banking Dive noted the digital banking change is seen as permanent, and legacy banks like JPMorgan Chase will “increasingly be forced to compete for customers with smaller, scrappier neobanks and other fintechs in the space…One of the most effective strategies to combat such challenger banks may be to continue improving and innovating mobile banking apps.”