The pervasiveness of digital banking is evidence that the Web has gained enough credibility to make ordinary people feel comfortable moving their money around without involving cash or paper checks. Sooner or later, we will subconsciously get rid of the modifier and simply refer to “digital banking” as “banking.” Although central banks have been wiring funds between each other for over a century now, it was not until 1989 that the general public got their first taste of digital banking thanks to Wells Fargo’s pioneering internet platform. Fast-forward to 2020 and it seems almost everyone is banking online. Let’s explore the most notable mobile and online banking statistics to see where retail banking trends will take us years from now.
Key Online Banking Statistics
- USA online banking statistics show that 80% of Americans would rather bank digitally than visit a brick-and-mortar branch.
- According to 2018 mobile and online banking worldwide statistics, the number of people who use mobile banking exceeded the number of those who bank using computers two years “ahead of schedule.”
- During 2020, the annual value of digital payments is expected to reach $726 billion.
- The volume of payment transactions via wearable technology is projected to be worth $500 billion before the start of 2021.
- Official statistics of online banking from the US government reveal that nearly 3,500 cyberattacks against banks in the United States were recorded in the first seven months of 2019 alone.
Digital Banking Statistics
Digital banking traces its roots back to the 20th century, but it was destined to flourish in the 21st. In the space of a generation, the world has gone from banking via floppy disk and text message to banking via websites and mobile apps.
In this day and age, pretty much every developed financial institution, be it the worst or the best bank in the world, offers some form of digital service. Check out the mobile and online banking facts below to get an idea of how digital banking usage has proliferated across the globe.
1. By 2017, there were fewer than 32 bank branches per 100,000 American consumers, reflecting the decades-long decline in the number of banks in the US due to policy changes and the formation of conglomerate banks like Bank of America.
(Federal Reserve Bank of St. Louis, Institute for Local Self-Reliance)
2. The average number of bank accounts per person in the US is 5.3.
3. Eight in every 10 Americans prefer banking digitally than visiting a physical branch, which explains the improving mobile and online banking adoption statistics in the country.
4. 82% of consumers in the US haven’t switched financial institutions because their current bank has a secure, intuitive, and convenient digital banking platform, highlighting the link between statistics about online banking and customer retention.
5. A 2018 survey revealed that only 31% of Americans aged over 65 and 4% of 18-to-34-year-olds don’t like to use ATMs for cash withdrawals, suggesting that cash continues to be highly relevant in the banking industry in the USA.
6. Five countries (the USA, China, Brazil, Japan, and India) are between them home to more than 50% of the world’s ATMs, but the drop in the number of these electronic outlets across most markets markets suggests growth in online banking trends.
(Yahoo Finance UK)
7. China online banking statistics from 2018 estimated that there were 168 million internet banking users in the country two years ago.
8. According to market statistics for online banking between 2011 and 2019, the annual value of online transactions in China exploded from 597 trillion yuan to more than 6.4 quadrillion yuan.
9. Online banking usage statistics in Europe from 2018 show that Sweden is near the top of the table with a penetration rate of 91%. The country aims to become the first cashless society on the planet by March 2023.
(Statista, European Banking Federation, Knowledge@Wharton)
10. The number of bank transactions executed via mobile-responsive sites or applications is expected to increase by 121% between 2017 and 2022, which is consistent with shrinking ATM usage trends in many developed countries worldwide.
(The Financial Brand, Yahoo Finance UK)
Statistics About Mobile Banking vs. Online Banking
Mobile banking refers to performing a finance-related activity via a smartphone or tablet, whereas online banking is when such an activity takes place on a desktop or a laptop. Online and mobile banking may share many similarities, but they are not always interchangeable.
Online banking users statistics trumped mobile banking ones for many years. That’s simply because desktop and laptop computers preceded tablets and smartphones and we’re more used to them. However, by some estimates, mobile banking is already taking over.
11. One of the most surprising online banking industry facts came in 2018, when mobile banking users outnumbered their online banking counterparts two years earlier than expected.
12. According to internet banking statistics from a 2018 survey, 73% of consumers use an online banking channel at least once every 30 days, whereas only 59% use a mobile banking application.
13. 47% of mobile banking users update their bank details via a laptop or desktop, while just 26% like to make changes with a smartphone, showing that consumers prefer online banking platforms over mobile ones for important tasks.
14. Statistics of online banking usage show that 53% of mobile banking users go online via desktop or laptop when making international fund transfers.
15. Among the most fascinating recent online and mobile banking statistics is the prediction that 88% of consumer-bank interactions will happen through smartphones by 2022.
(The Financial Brand)
16. 30% of consumers use mobile payment services like Venmo, but only 12% of adults aged 55 and above do the same. This shows that age demographics are a big factor in statistics of mobile and online banking usage.
17. Mobile and online banking by age statistics reveal that consumers aged 50 and above will make up nearly a third of mobile banking logins two years from now.
(The Financial Brand)
18. In negative correlation with rising mobile banking statistics, bank interactions through desktops and laptops are forecast to decline by 63% from 2017 to 2022.
(The Financial Brand)
19. The latest online banking statistics from Canada show that 53% of Canadians who conduct financial transactions digitally prefer desktop and laptop computers to smartphones and tablets for banking.
(Canadian Bankers Association)
20. Online banking statistics from Australia in 2018 show that the number of online banking users (54.2% of the population aged over 14) in the country decreased by 2% from the year before, but was still greater than that of mobile banking users (46.5%).
The latest trends in online banking show that wide-scale fintech disruption is coming. Although some factors, like sluggish integrations, have been slowing down the adoption of innovations in banking, no roadblock is big enough to stop fintech in its tracks. As such, we can expect online banking statistics to reflect the success of fintech in the near future.
21. It’s projected that global digital payments will reach an annual value of $726 billion during 2020.
22. The average amount UK consumers deposited into neobank accounts (accounts at digital-only banks) jumped from £70 ($90) in 2018 to £350 ($451) in 2019, which was among the country’s key consumer banking trends.
23. In 2019, 51% percent of British consumers still considered neobanks risky places to store their money, meaning traditional financial institutions are still more popular for banking online.
24. Among recent UK online banking statistics, perhaps the most remarkable is that there were five million new accounts created with neobanks during the first two quarters of 2019.
25. So, how many people bank online with neobanks in the UK? The collective customer base of British digital banks is expected to reach 35 million account holders in 2020.
26. Between 2017 and 2022, the number of retail bank branches is projected to drop by 36%, online banking growth statistics show.
(The Financial Brand)
27. Due to the increased popularity of fintech retail banking, younger millennials will, on average, visit their banks just twice a year in 2022.
(The Financial Brand)
28. Projections show that, by 2022, more than 90% of banking interactions will take place via chatbots. The benefits of human-less inquiry resolution have already been reflected by services like Corporation Bank online and SunTrust Bank online personal banking.
(Juniper Research & Inc.)
29. From its introduction in 2018 to the end of Q4 2019, AI-driven bot Erica had served 10.3 million customers, according to Bank of America statistics.
30. Online banking customers statistics show that chatbots powered by artificial intelligence are being optimized to reduce fraud and elevate digital customer experience, which will save financial institutions $8 billion annually by 2022.
(Hacker Noon, Moneycontrol, Juniper Research)
Omnichannel Banking Statistics
Omnichannel banking is the ability to seamlessly engage with a financial institution across multiple channels, both digital and offline.
Once omnichannel banking becomes the norm, the average consumer could apply for a mortgage while talking to a voice interaction device in a car, continue the process via smartphone in the parking lot, then seal the deal with a real person at their local branch. Unfortunately, the best online banking service right can’t match the convenience absolute omnichannel banking could provide.
There’s no telling when omnichannel banking will become the standard, but we do know it will represent the true union of fintech and traditional banking. Every innovation we see in the financial services industry today pushes us closer to that reality.
31. 67% of smart speaker owners in America are comfortable making financial transactions through voice banking; unsurprisingly, most of them are US online and mobile banking users, too.
32. Wearable payment is poised to gain as much attention as the other latest trends in mobile banking; its annual transaction volume is projected to hit $500 billion before 2020 ends, according to Infosys.
33. By 2022, 56% of bank cards in the US will offer contactless payment, which is a huge jump from 19% in 2019, thanks in particular to the initiatives of JPMorgan Chase, the most used bank in America.
(Global Payments, Bankrate, Finextra)
34. The contactless payment adoption rate among North American merchants is expected to grow to 60% in the near future.
(JPMorgan Chase, Energy and Capital)
Banking Fraud Statistics
The transition towards digital banking has been far from smooth. It has also produced horrifying online banking statistics relating to cybercrimes.
Armed violence may have become less of a concern in banking as cash loses its relevance in society, but the threat of robbery remains just as severe, if not worse than ever.
35. It can take up to half a year to detect a data heist, which means current online banking security statistics probably don’t reflect the true extent of the problem.
(Cyber Defense Magazine)
36. In 2019, there were 3,494 successful cybercrimes against American financial institutions by the end of July; Capital One, which failed to safeguard the private information of more than 100 million individuals, was a major contributor to negative US bank statistics that year.
(The New York Times, Insurance Information Institute)
37. One might expect statistics of online banking theft to show smaller organizations bearing the brunt of cybercrime since they have fewer resources to combat cyberattacks. However, Mastercard actually fought off an average of 460,000 system intrusion attempts per day in 2019, which was 70% more than in 2018.
(The New York Times)
38. According to global online banking statistics, cybercrime cost the average global financial institution $18.4 million in 2018.
(Insurance Information Institute)
39. Credit card-centered online banking fraud statistics over the years are declining, but the cost identity theft cases related to the unauthorized creation of new accounts to take out loans recently reached $3.4 billion annually.
40. The central bank of Bangladesh lost $81 million to still-unidentified hackers in 2016 in one of the worst cybersecurity breaches ever, financial industry statistics show.
41. Bangladesh Bank’s online banking attacks statistics would have looked much worse if the digital robbers had not misspelled “foundation” in one request, a mistake that stopped the release of at least $20 million from the Federal Reserve Bank of New York.
42. Data heists have exposed over 11 billion consumer records since 2005, but such online banking crime statistics have been trending downwards recently.
(The New York Times, The Ascent)
43. Fraud-related online banking statistics in the US in 2017 and 2018 remained practically the same, but the number of banking records exposed dropped by 47% in that period.
What percentage of people bank online?
In 2018, the total number of digital banking users was expected to exceed two billion worldwide. Despite the growth of online banking and an increase in the amount of research in the field, there’s no one answer to this relatively simple question. However, based on a Global Findex survey from 2017, we can see that at least 69% of adults worldwide have a bank account. Pair that with Deloitte research showing that 73% of people with bank accounts use online banking at least once a month, and we can surmise that just over 50% of adults bank online.
How many people use online banking in the UK?
By 2019, 72% of British consumers were doing most of their banking transactions over the internet. Despite the glaring differences in online banking vs. traditional banking statistics, most fintech adopters in the UK still consider established financial institutions to be their primary banking option.
What percentage of banking is done online?
More or less 50% of the most common banking activities are now conducted online. Statistics in online banking are expected to soar over time as consumers feel more comfortable using digital devices and platforms for financial transactions.
How do I increase my online banking usage?
In most countries, you can do almost all your banking online these days. Online banking statistics show that around half of banking takes place on computers or mobile devices these days. If you want to join this trend, head to your local bank branch and ask a teller to help you set up online banking on your laptop or phone. Once you get the hang of it, you’ll never have to line up at the bank again.
What percentage of people use mobile banking?
In 2018, around 50% of the global banked population were mobile banking users. Remember, however, that 1.7 billion people around the world remain unbanked. The proportion of online banking vs. mobile banking worldwide has changed significantly since China and India aggressively embraced fintech.