WASHINGTON–With findings that will surprise few people and which show how the pandemic can change a trend line, the Federal Reserve has released a new study showing the use of online banking has increased slightly over a three-year period ending in 2019, while use of paper checks declined over the same time.
Given that the findings do not include the coronavirus lockdowns of 2020, findings in the report that include noting consumers continue to use physical branches in spite of the use of online services are likely largely obsolete.
In its triannual Survey of Consumer Finances (SCF), the Federal Reserve said it found just under 80% of families responding to the survey participated in online banking services at their financial institution, which is up from just more than 70% in 2016.
The survey further found 79% of online banking members/customers said they had visited the branch of the institution with which they have a checking account, and 67% had visited the FI with which they have a savings account.
The figure was higher for non-users of online services, with the figures 85%/81%, respectively.
“Online banking appears to be an imperfect substitute for at least some physical financial services, including visiting a local bank branch,” the Fed stated in the report.
Additional Findings
Other findings:
- Consumers continue to use paper checks, although at a lesser rate than they used to. In 2016 the Fed survey found just more than 70% said they had written a paper check in the past 12 months. By 2019, that figure was 65%.
- In another non-surprise, the report states the Internet has become “an increasingly important source of information over time” for families shopping for financial services.
- 55% of families looking for information on borrowing/loans turned to online sources, up 14 percentage points from 2010 and up 34 percentage points since 2001.
- Similarly, for information on investing, 45% of families reported using the Internet, up 12 percentage points from 2010 and up 30 percentage points from 2001.”
For info, go here: Survey of Consumer Finances (SCF)