07 April 2020
A Youthful Perspective: Digital Banking in 2020
Published on 18.12.2019
Digital Banking has Matured
Digital banking has reached a level of maturity in 2019 to the point where it is almost a standard offering to customers. In fact, digital banking is currently being used by more than 160 million customers in the US alone. This number is set to rise to new heights worldwide in 2020.
As more of the younger generations, specifically millennials, begin entrusting their own money in banking institutions, they expect to manage their finances the way they want. This is typically through the use of technology, such as laptops and mobile apps.
Let's take a look at the key statistics that drive more and more banks around the world to center their focus on digitizing the banking experience.
The Rise of Digital Banking
The increased use of mobile banking can be attributed in large part to the increased number of Millennials beginning to use banking services of their own. As a generation raised on technology, it is easy to understand why they have becomes so infatuated with the use of their mobile phones in every aspect of their lives.
As Millennials continue to grow, mature, and become independent, they will open their own banking account. This will go hand-in-hand with their requirement to be able to bank on their phones as well.
It Starts with a Tap
Catering to millennials does not start after they have opened an account. Actually, it starts much before that. According to a recent survey, millennials are three times more likely to open a bank account through the use of their mobile phones than doing so in person. Although this may cause some challenges for banks, it does open opportunities, as well. What was once considered mandatory to do is now possible on mobile phones.
This raises the ceiling of possibilities for what a bank can do digitally for their customers.
It's a Millennial Thing
To help reinforce the notion that Millennials are driving the change in banking, studies have shown that 68% are more likely to switch banks to one that offers a better, or more advanced, digital service.
The sense of urgency within banks to push their digital services has reach a fever pitch in 2019 and will continue into 2020. Banks must continuously advance to keep up with the demands of the new-age customers.