Banking

A small but growing number of Americans don't go to the bank. The bank goes with them.
According to a new survey by the Federal Reserve Board of Governors, 20 percent of American consumers used their mobile phones to access their bank accounts, credit cards, or other financial accounts in the 12 months through January. An additional one out of five people said they would probably use mobile banking in the future. The majority of consumers who have a mobile phone but do not use mobile banking said they either had no need for these services or were concerned about security.

One third could go mobile soon
By 2013, mobile banking usage could grow to about 33 percent of mobile phone users, according to the survey.

Young people appear to be most comfortable banking with their phones. People between 18 and 29 account for about 44 percent of mobile banking users, while that age group makes up just 22 percent of mobile phone users. Meanwhile, people age 60 and over account for only 6 percent of all mobile banking users but 24 percent of mobile phone users. The survey also showed a higher level of mobile banking use among African-Americans (16 percent) and Hispanics (17 percent), even though those groups represent 11 percent and 13 percent of mobile phone users, respectively.

People who have bank accounts but who use check cashers, payday lenders, or payroll cards make relatively heavy use of mobile banking, according to the survey. Of this group, 29 percent used mobile banking in the year ending January 2012.

Some features prove more popular
The most common mobile banking activities are consumers checking their account balances or monitoring recent transactions. Less frequently used mobile banking functions include making online bill payments from a bank account, locating an in-network automated teller machine, and depositing a check by phone.

Knowledge Networks, an online consumer research firm, conducted the survey for the Fed Board of Governors. Nearly 2,300 respondents completed the survey.

March 26, 2012