CHARLOTTESVILLE, Va.—New data indicates that one-in-four consumers would pay for mobile banking if their financial institution decided to start charging for it.
SNL Financial asked nearly 4,400 consumers in the U.S. one question: "If your bank charged $3 a month to use its mobile bank app, would you pay to keep using the bank app?," 24% said yes.
There was a significant difference by age group: the older the consumer, the less willing they are to pay a fee for mobile banking. 32% of older Millennials (26-35 years old) were willing to pay $3 per month, but only 22% of Baby Boomers (48-66) and 17% of seniors (67 and older).
Gender differences were apparent. Males were more likely to be willing to pay a fee (27%) than females (21%).
There was also a wide discrepancy in financial institution customers. Certain FIs did better than others with regard to how many customers would be willing to pay for an app. 33% of Bank of America customers said they would pay $3 a month, while only 18% of Capital One customers would absorb this fee.
76% of consumers said they were not willing to pay $3 a month for mobile banking.
“Charging for this service may actually cause an FI to lose customers in the long run,” said Bill Hardekopf, CEO of LowCards.com, Birmingham, Ala. "But the willingness of nearly one-quarter of consumers to pay a fee for mobile banking may be something to watch out for in the future.”
Hardekopf added that another study from earlier this year showed 56% of FI customers consider the availability of a mobile banking app important when opening a new checking account.
“Eighty percent of banks and credit unions currently offer mobile check deposits and basic account management solutions through free phone apps, and that number is expected to grow in the coming years,” Hardekopf said.