The banking industry has gone through a significant transformation in the last decade. The introduction of digital banking has changed the way people bank, and it continues to grow in popularity. Digital banking has become the preferred way to bank for many consumers because of its convenience and accessibility. Here are some digital banking statistics that highlight its growth and importance in the banking industry.
Digital Banking Usage
According to a survey conducted by Business Insider Intelligence, 89% of US consumers use digital banking. This number is expected to increase in the future as more people adopt digital banking. The survey also found that mobile banking is the most popular form of digital banking, with 64% of consumers using it.
The popularity of digital banking is not limited to the US. A survey conducted by Ernst & Young showed that 69% of consumers in the UK use digital banking. The survey also found that 52% of consumers in the UK use mobile banking.
Benefits of Digital Banking
The convenience of digital banking is one of its biggest selling points. Consumers can access their accounts 24/7, which means they don’t have to wait for bank opening hours to complete transactions. They can also complete transactions from anywhere, whether they are at home or on vacation.
Digital banking also saves time. Consumers can complete transactions quickly without having to wait in long lines at the bank. They can also set up automatic transactions, which saves them time and eliminates the need to remember to make payments.
Security Concerns
One concern that many consumers have with digital banking is security. However, digital banking is actually more secure than traditional banking. Digital banking uses encryption and multi-factor authentication to protect consumer information. Banks also have fraud detection systems in place to monitor account activity and detect suspicious behavior.
Impact on Bank Branches
The growth of digital banking has led to a decline in the number of bank branches. According to a report by McKinsey, the number of bank branches in the US has decreased by 6% since 2008. The report also predicts that the number of bank branches will continue to decline in the future as more consumers adopt digital banking.
The Future of Digital Banking
The future of digital banking looks bright. As more consumers adopt digital banking, banks will continue to invest in digital technologies to improve the customer experience. This will include new features such as artificial intelligence and chatbots that will make banking even more convenient.
According to a report by Accenture, the digital banking market is expected to grow at a compound annual growth rate of 8.6% from 2020 to 2027. This growth is driven by factors such as increased smartphone adoption, the rise of mobile payments, and the need for more convenient banking solutions.
Conclusion
Digital banking is the future of banking. Its convenience and accessibility have made it popular among consumers, and its security measures have made it a safe way to bank. As more consumers adopt digital banking, banks will continue to invest in digital technologies to improve the customer experience. The future of banking is digital, and it’s exciting to see where it will go from here.