The latest online banking statistics show that digital banking is the way banks and their customers will handle accounts shortly. The free services of digitized bank accounts provide the same features as the traditional ones, with various added benefits.
Managing the banking accounts is easier, faster, and hassle-free. What’s more, the number of neobanks is growing globally, offering their services to millions of people. However, there are dangers to pay attention to, mostly related to cybercrime.
Online Banking Facts (Editor’s Choice)
- The pay later payment system has seen increased penetration at about 30% of the consumers
- Banks have lost $8 to $10 billion from fintechs focused on POS financing.
- About four in five Americans have used an online banking system.
- A total of 71% of bank customers regularly use online banking.
- The adoption rates for online payments are three times higher among people aged 18 to 34.
- About 64% of people stated they’d research a bank’s mobile services before opening the account.
- A total of 97% of Millennials use online banking.
- Approximately 95% of Americans trust their banks will secure their data on digital banking platforms.
Briefly on Online Payment and Banking Statistics
Buy now, pay later services are currently affecting the banking systems. Since the arrival of the pandemic, and omnichannel use of digital payments has increased, and banks face losses due to newly introduced fintech services.
1. Omnichannel use of digital payments reached 58%.
(Source: McKinsey)
Overall, 82% of Americans are using some form of digital payment. So much so that the omnichannel use of digital payments is growing. In 2020, it reached its all-time high, at 58%, according to the digital banking trends. Some shifts seem to be related to the pandemic and more consumers staying at home.
2. Buy now pay later penetration has grown to 30% of respondents.
(Source: McKinsey)
One of the digital payment systems, buy now, pay later, has seen increased penetration at about 30% of the consumers. Without this payment system, 39% of people would likely purchase everything with a credit card, based on the latest trends in online banking.
3. Banks have lost $8 to $10 billion from fintechs focused on POS financing.
(Source: McKinsey)
At the moment, banks are using $8 to $10 billion each year due to other Point Of Sale financial services. Trends that affect this include digitization, rising merchant adoption, repeat usage among younger customers, and buy now, pay later services. In addition, credit that derives from POS will continue to grow and reach 13% to 15% of balances by 2023.
Online Banking Usage Statistics
Online banking is straightforward, which prompts many users to get the service activated. Generationally, more Millennials and Gen Zers use digital services, which will lead to further growth of online banking.
4. About four in five Americans have used an online banking system.
(Source: McKinsey)
In 2021, about four in five Americans will have used some sort of digital payment system. That’s close to 82% of Americans using browser-based or app-based payment methods, according to online banking facts.
5. Online banking is mostly used in households that earn $75,000.
(Source: FDIC)
However, not all households are keen on using digital banking. Households that earn at least $75,000 are most likely to access their bank accounts, in 32.1% of cases. They’re also most likely to use mobile banking, in 38.1% of cases. These households are also the least likely to be unbanked, based on the statistics of online banking usage.
6. A total of 71% of bank customers regularly use online banking.
(Source: Federal Reserve)
According to the latest information from 2016, a total of 71% of bank customers regularly use online banking. Still, the most common way of interacting with a financial institution was visiting the branch, in 84% of cases. The second most common method was using an ATM. However, chances are the percentage of online banking users will increase in the future.
7. About 64.6% of Americans used online banking in 2021.
(Source: Information Week)
The pandemic changed customer behavior, and many turned towards digital banking services. In 2021, a total of 64.6% of Americans used online banking. This number points out that there’s an evident shift from centralized banking to a more distributed one.
8. Approximately 80% of people prefer online banking rather than visiting the branch to solve issues.
(Source: WRAL)
Online banking customer statistics also show that 80% of people prefer online banking rather than visiting the branch to solve their issues. Besides, digital banking has lower fees and interest rates, which makes it a handy option to use.
9. There were 161 million Americans using digital banking in 2019.
(Source: Statista)
In 2019, there were 161.6 million Americans using digital banking. This number represents over a 20% increase from 2014. According to online banking growth data, two factors led to this – the prevalence of smartphones and the rise of fintech companies.
10. The adoption rates for online payments are three times higher among people aged 18 to 34.
(Source: McKinsey)
In-app payments is the category with the widest age disparity. Its adoption rates are three times higher among people aged 18 to 34 than among those aged 55 or higher.
11. A total of 97% of Millennials use online banking.
(Source: Business Insider)
According to current online banking stats, a total of 97% of Millennials use online banking. This is a 92% increase from 2017. Furthermore, 91% of Gen Zers and 79% of Baby Boomers use these services.
12. About 64% of people stated they’d research a bank’s mobile services before opening the account.
(Source: Business Insider)
Online banking became so crucial for consumers that 64% of people would first research the bank’s mobile services before they open the account. Additionally, 61% stated they’d change their bank if it offers a poor mobile banking experience.
Mobile Banking Usage
Besides the web application, mobile banking is also available as a mobile app. However, many don’t use it for P2P transitions. Still, mobile banking helps improve awareness of the person’s financial situation.
13. A total of 76% of Americans bank via mobile app.
(Source: Forbes)
At the moment, 76% of Americans bank via mobile app. The most common services they use include depositing checks and checking statements and account balances, according to digital banking stats.
14. About 62% of Americans find that mobile banking helps them increase awareness of their financial situation.
(Source: Fintech News)
What’s more, 62% of Americans claim that mobile banking helps them increase awareness of their financial situation. Moreover, 41% of customers have fewer concerns about personal finance management because of mobile banking apps, and 38% love the increased awareness services provided by their bank, online banking vs traditional banking statistics show.
15. Additionally, 94% of mobile banking users login to web apps to deal with some issues.
(Source: Softensy)
Still, sometimes a mobile app is not enough to manage accounts and finances. A total of 94% of mobile bank users also log in to desktop apps to conduct some operations. For example, 38% of people log in to web applications for P2P money transfers.
Global Online Banking Statistics
Globally, online banking is forecasted to grow and reach about 2.5 billion users by 2024. The number of neobanks will also increase, as Millennials and younger generations prefer digital services.
16. The global banking industry reached $2.48 trillion in 2021.
(Source: Virtual-Strategy)
The latest information shows that the global banking industry reached $2.48 trillion in 2021. According to the forecasts and banking industry statistics, by 2026, the global online banking industry will hit $20.5 billion.
17. The online banking market size is forecasted to hit $31.81 billion by 2027.
(Source: GlobeNewswire)
After the 2026 forecasts, the data for 2027 shows that the online banking industry will shoot up to $31.81 billion. That’s a CAGR of 13.6% from 2020 to 2027. Asia-Pacific will register the largest CAGR of 15.2% for the stated period.
18. The Far East and China have 800 million online banking users.
(Source: Statista)
According to the online banking users statistics, the Far East and China have the most online banking users, a total of 800 million. This number is expected to hit one billion by 2024.
19. A total of 1.9 billion people use online banking globally.
(Source: Statista)
As of 2020, 1.9 billion people use online banking services worldwide. What’s more, this number is expected to reach 2.5 billion by 2024, as the growth of online banking will continue.
20. A total of 73% of global bank customers use online banking at least once a month.
(Source: Deloitte)
According to a Deloitte survey, 73% of bank customers globally use online banking at least once a month. For comparison, 59% use mobile apps.
21. There will be 85 million people using neobanks in Europe.
(Source: VPNCrew)
By 2023, 85 million people will be using neobanks in Europe. In addition, Millennials and younger generations prefer digital services, which makes the future of neobanks bright, according to online banking statistics.
22. Iceland has 96% of the population using online banking.
(Source: Statista)
When it comes to Europe, Iceland has the most people using online banking, a total of 96%. It’s followed by Norway and Denmark. Additionally, the use of physical cash is lower in Germany and Austria.
23. The deployment of chatbots will save the banking industry $7.3 billion in customer service costs by 2023.
(Source: LeadSquared)
Banks will also benefit from turning towards digital services. For example, if they also implement chatbot technology, it should save them $7.3 billion in customer service costs by 2023. This shows that automated processes will lead to the growth and development of financial institutions.
Online Banking Security Statistics
Even though digital banks seem generally safe, that’s not always the case. Still, most Americans have trust in their banks and aren’t afraid for their personal data stored on digital platforms.
24. Banks lose about $1 trillion to cybercrime each year.
(Source: Omnibek)
Banks around the world currently lose up to $1 trillion to cybercrime per year. This loss is detrimental to both the banks and the clients. Unfortunately, the risk of a cyber attack on banks is on the rise, according to statistics of online banking theft.
25. Cyber attacks on any of the top five banks in the US could affect 38% of the network.
(Source: Investopedia)
The Federal Reserve Bank of New York recently published a report where it stated that the interconnectivity of the banks is huge, meaning the spillover of cyberattacks is great. So much so that only one attack on one of the top banks could affect 38% of the network.
26. Still, a total of 95% of Americans trust their banks will secure their data on digital banking platforms.
(Source: Accredited Debt Relief)
Regardless of these dangerous internet banking trends, 95% of Americans have trust in their banks. They believe that banks will secure their data on digital banking platforms. Still, concerns about the safety of online banking should be taken seriously.
27. About 93% of banking frauds happened online.
(Source: Infosecurity Magazine)
What’s more, 93% of banking frauds happened online. Additionally, Q1 2021 saw a 728% increase in mobile banking fraud attempts compared to the previous quarter. The rise is a part of a cybercrime boom that followed the pandemic.
28. Account takeover accounted for 42% of frauds.
(Source: Security Magazine)
Internet banking statistics also show that account takeover happened in 42% of frauds and is the most common type of fraud. New account fraud happened in 23% of cases, impersonation happened in 21% of cases, and purchase scams and phishing occurred in 15% and 7%, respectively.
29. Card-not-present fraud accounted for 83% of all fraud attempts.
(Source: Infosecurity Magazine)
In general, the card-not-present scam accounted for 83% of all fraud attempts. Still, there were only 18% of card transactions, according to online banking fraud statistics.
30. About 20% of bank customers had a banking trojan virus.
(Source: Security Magazine)
Cybercriminals will often use phishing to deliver malicious links and gain access to the person’s data. However, about 20% of banking customers had a banking trojan virus on their devices. What’s more, 23% of financial services employees were exposed to a mobile phishing attempt.
Conclusion
Digital banking systems offer a unique kind of freedom to their users. The online banking statistics show that the younger generations love its simplicity and availability, and the older generations are also getting accustomed to digitization.
By 2024, it’s expected that over 2.5 billion people will use digital banks around the globe. The Asia-Pacific region will lead, but millions of people will also use neobanks in Europe.
Still, those who have installed a mobile banking app should be careful when it comes to various cyberattacks and do all they can to remain protected.
FAQ
The data from 2016 shows that a total of 71% of bank customers regularly use online banking. Still, the most common method of managing the finances was going to the branch, in 84% of cases.
However, the pandemic changed customer behavior, and in 2021, a total of 64.6% of Americans used online banking. Globally, as of 2020, 1.9 billion people have online bank accounts, and most are Millennials. By 2024, there might be over 2.5 billion online bank users globally.
Based on the data from 2016, 71% of bank customers were using their online bank accounts regularly. At the moment, about 73% of global bank customers use online banking at least once a month.
When it comes to mobile banking, 59% of global users have a mobile bank app that they use regularly. Additionally, 76% of Americans bank via mobile app.
The Far East and China have the most online banking users, a total of 800 million. This number is expected to hit one billion by 2024, which would make this a region with the most people using online banking.
Regarding America, in 2021 there were 64.6% of Americans who used online banking. The main reason behind the increased use was the pandemic. When it comes to Europe, Iceland has the most people using online banking, a total of 96%.
Online banking brings multiple benefits to its users. Paying bills is easier online or with a mobile app. The account is always accessible, and people can see each transaction and the history of spending.
Even better, they can transfer money between accounts online, which is more convenient than going to a bank. Finally, having a mobile banking app allows access to all the account tools and features while remaining safe while using it.
The pandemic prompted more people to use digital services of their banks, together with various kinds of online payment methods. This resulted in the increased demand for online banking tools.
Customers are now more likely to manage their accounts online on a browser or their smartphones. Additionally, due to the convenience and speed of online banking, chances are it will keep on growing in the future. Still, banks should work on providing even better experiences to their customers.
As with any payment system, there are some pros and cons to online banking. Overall, digital banking is safe. However, it all depends on how much the users know about cyber threats. While banks secure their mobile apps with multiple safety systems, some issues might still occur.
Online banking is safe when users pay attention to the links they click online, especially if a link looks like it’s from the bank. Customers should also change passwords regularly and consider using multi-factor authentication to secure their accounts, according to online banking statistics.