Mobile banking is primarily being used by the youngest Americans.
40-five per cent of Americans aged 18 to 29 have used mobile banking in the past 12 months, according to a Federal Reserve survey. Among those over 60, the adoption rate drops to 9 per cent. Overall, 28 per cent of Americans have used mobile banking in the past year.
Two factors are driving the greater proportion of use among younger consumers.
First, young people are more likely to own smartphones than their parents. 40-eight per cent of smartphone owners have used mobile banking services in the past 12 months. Among feature phone owners, the usage rate is only 6 per cent.
Also, young Americans are probably already comfortable with online banking and thus more likely to transition to banking on mobile. Many mobile banking services are essentially just extensions of online features — check your balance, transaction history, etcetera. Many Americans under the age of 30 have probably never balanced a check book. For them, online banking is banking.
Interestingly, however, mobile banking use is fairly steady across income groups, suggesting a broad appeal.
The drop off in usage for Americans making less than $25,000 per year is attributable to lower smartphone ownership. Additionally, consumers in lower income brackets are the least likely to have a bank account.
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