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Money Digital banking statistics
Most banks offer digital and online banking services that allow customers to check balances, make payments, and transfer money between their accounts using their smartphone or computer.
This article delves into digital banking statistics including how many people in the U.S. use these services, how secure they are, and the most important features people look for in digital banking. It also includes data from a survey on behalf of Self which asked over 1,200 people how they use digital banking.
Key statistics
- 66% of people in the U.S. use digital banking as of 2023, with this predicted to exceed 79% by 2029.
- Mobile apps are the preferred method of banking for 59.4% of people, while 27.4% prefer to use a web browser, and 10.5% prefer to visit their bank in person.
- The most common concern people have with online banking is security and fraud (35%), followed by losing access due to technical problems (31.5%).
- An Ipsos study found that, among victims of online financial or cybercrime fraud, 23% said they had experienced online banking fraud or scams.
- Most people use digital banking services to check their balance (73.2%) and transfer money between their accounts (69.2%).
- More than half (51.3%) of people think that physical bank branches are still essential, and 83.9% have visited one in the past 12 months.
- The majority (56%) of people do not trust online-only banks with no physical branches, with 22% citing security concerns about these banks.
How many people use digital banking in the U.S?
Data from 2023 shows that around 66% of the U.S. population use online banking. The number of online banking users is predicted to exceed 79% of the population by 2029. [1] Statista, “Digital Banking Penetration Rate U.S” https://www.statista.com/forecasts/1285979/digital-banking-penetration-rate-usa
According to a survey on behalf of Self Financial, 96.3% of respondents have used an online or mobile banking service at least once in the last 12 months.
Most people (52.6%) use digital banking weekly
More than half of respondents (52.6%) say they use digital banking weekly, while 27.1% say they use it daily. Only 0.4% of people say they never use any digital banking methods.
| How often people use digital banking | |
|---|---|
| Daily | 27.1% |
| Weekly | 52.6% |
| Monthly | 18.2% |
| A few times a year | 1.7% |
| Never | 0.4% |
Keeping a close eye on your bank accounts can help you keep track of your finances, and make it easier for you to catch fraudulent activity on your account.
Checking balances (73.2%) and making transfers (69.2%) are the most common uses of online banking
Almost three-quarters (73.2%) of respondents say they have used digital banking to check their account balances in the past month, while 69.2% have used it to transfer money between their own accounts, and 53.3% have used it to send money to someone else.
| What people have used online banking for in the past month | |
|---|---|
| Checking balance | 73.2% |
| Transferring money between your accounts | 69.2% |
| Transferring money to someone else | 53.3% |
| Scheduling payments | 36.3% |
| None of the above | 1.0% |
Note: Respondents could select more than one answer.
Most people (70.8%) access bank accounts with a smartphone
Digital banking gives us the convenience to access our bank accounts wherever we are, and the majority of respondents (70.8%) use smartphones to check their accounts and manage transactions. A laptop was the next most common device used at 54.1%, while tablets were the least likely (14.4%).
| Devices people use to access online banking | |
|---|---|
| Smartphone | 70.8% |
| Laptop | 54.1% |
| Desktop computer | 38.7% |
| Tablet | 14.4% |
Note: Respondents could select more than one answer.
Preferred methods of banking
The majority of people (59.4%) say that their preferred method of banking is via a mobile app, while 27.4% prefer to access their accounts online using a computer or web browser on another device. While not everyone’s favored method, 92.9% said they use a mobile app to access online banking at least some of the time.
| Preferred methods of banking | |
|---|---|
| Mobile app | 59.4% |
| Online (via computer or web browser) | 27.4% |
| In-branch | 10.5% |
| Telephone | 2.7% |
Why people use online banking
The most common reason people use online banking is for convenience, with two-thirds (67.5%) saying this is the main reason they use it. 23% said they use online banking because their bank is only available online, and 8.9% say they use it because there are no bank branches close to them.
| Why people use online banking | |
|---|---|
| Convenience | 67.5% |
| My bank is only accessible online | 23.0% |
| There is not a bank close to me | 8.9% |
24/7 access is the most important thing people want from their bank (64.3%)
When asked about the most important things they look for in a bank’s online services, most people (64.3%) said that 24/7 access to their accounts was a top priority. This was followed by having a mobile app available (59.1%) and being able to make money transfers online or via an app (52.4%).
| Most important things people want from online banking services | |
|---|---|
| 24/7 access | 64.3% |
| Mobile app | 59.1% |
| Money transfers | 52.4% |
| Bill paying | 50.6% |
| Managing multiple accounts | 29.2% |
Note: Respondents could select more than one answer.
Physical bank branches
83.9% of survey respondents say they have visited a physical bank branch in the past 12 months, but how regularly do people use physical branches?
8.1% of people never visit a physical bank branch
The highest proportion of people (31.7%) said they visit a bank branch a few times a year, while 27.2% said they visit them monthly. 8.1% say they never visit a bank branch in person, but a similar percentage (8.9%) say they visit their bank daily.
| How often people visit physical bank branches | |
|---|---|
| How often people visit physical bank branches | |
| Daily | 8.9% |
| Monthly | 27.2% |
| Weekly | 24.2% |
| A few times a year | 31.7% |
| Never | 8.1% |
A previous study on behalf of Self about bank closures found that people mostly used physical banks for making cash deposits (63.2%) and speaking to advisors in person (56.5%). This survey also found that 39% of people trusted physical banks the most, more than online (36.1%) and app-based banking (24.9%).
The analysis of FDIC data shows that an average of 1,646 bank branches have closed each year since 2018, and based on our analysis physical banks could be completely extinct by 2041.
Data from S&P shows that between April 2023 and March 2024, there were 1,277 net bank branch closures in the U.S. with Wells Fargo closing the most branches (290) in the 12 months to March 2024. [2] S&P Global, “U.S. Banks’ Net Closings Climb in Q1 as Branch Network Adjustments Continue” https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-banks-net-branch-closings-climb-in-q1-as-branch-network-adjustments-continue-82027239
Half (51.3%) of people think physical banks are essential
The majority of those asked (51.3%) said that physical bank branches were essential, while 41.9% said they were somewhat important. Only 6.9% of those surveyed think that physical bank branches are not important at all.
Further to this, almost three-quarters (71.9%) say they would be put off signing up with a bank if they didn’t have any physical branches.
Concerns about digital banking
Although many people now use digital banking in some form, there are still a number of concerns people have when it comes to banking online. Let’s take a look at some of the top concerns survey respondents mentioned.
Security and fraud is the top concern about digital banking (35%)
More than a third (35%) of people said that they had concerns over security and fraud when using online banking services. A further 31.5% said they were worried about losing access to their accounts due to technical problems. Alongside this, 76.8% said they had experienced technical issues at least once when trying to access their bank online via a web browser or a mobile app. Only 13% of people said they had no concerns at all about digital banking.
| Concerns people have about digital banking | |
|---|---|
| Security and fraud | 35.0% |
| Losing access due to technical problems | 31.5% |
| Lack of customer support | 17.8% |
| I don't have any concerns | 13.0% |
| I don't trust online services | 2.8% |
Digital banking security and fraud
With 35% of survey respondents saying that security and fraud is their biggest concern when it comes to digital banking, just how secure are digital platforms when it comes to managing your money?
54.1% have experienced fraud attempts with online banking
More than half of the people surveyed (54.1%) say they have experienced fraud or fraud attempts when using online banking. This can include things like phishing scams, payment fraud, identity theft, or compromised account details.
Data from the FTC shows that U.S. consumers reported losing more than $10 billion to fraud in 2023, an increase of 14% compared to 2022. The FTC received fraud reports from 2.6 million consumers in 2023, however, this includes all types of fraud, not just online-banking-related fraud. [3] FTC, “Nationwide Fraud Losses Top $10 Billion” https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-public
An Ipsos study in 2023 found that, among online financial or cybercrime fraud victims, 23% said they had experienced online banking fraud or scams. [5] Appinventiv, “AI in Banking - How Artificial Intelligence is Used in Banks” https://appinventiv.com/blog/ai-in-banking/
7 in 10 people use passwords to access digital banking
The most common method people use to access their bank accounts online or via mobile apps is a password or passcode (69.7%). Around half (50.4%) use their fingerprint to gain access and 36.5% use facial recognition. Respondents were able to select more than one answer, and many said they used a combination of two or more of these options.
| Security measures people use to access digital banking | |
|---|---|
| Security measures people use to access digital banking | |
| Password or passcode | 69.7% |
| Fingerprint | 50.4% |
| Facial recognition | 36.5% |
Note: Respondents could select more than one answer.
AI and digital banking
Artificial intelligence (AI) technology has progressed significantly in recent years, with applications across almost every industry sector. But how does AI impact the banking sector?
As previously mentioned, most people now use digital banking to access their accounts, and 54.1% have experienced fraud or fraud attempts when using these services. One study by Danske Bank in Denmark found that implementing an AI fraud detection algorithm increased their fraud detection capability by 50%. [6] Civic Science, “Online-Only Banks Are Gaining Ground with Gen Z” https://civicscience.com/online-only-banks-are-gaining-ground-with-gen-z/
AI chatbots also offer round-the-clock customer support to answer questions, recommend services, and reduce workload for bank employees. One example is Bank of America’s AI Erica virtual assistant which handles things like security updates and credit card debt reduction. [6] Civic Science, “Online-Only Banks Are Gaining Ground with Gen Z” https://civicscience.com/online-only-banks-are-gaining-ground-with-gen-z/
Two-thirds (65.6%) of survey respondents said they would be happy to communicate with AI chatbots through their bank’s mobile app or website.
Online only banks
Online-only banks are banks that allow customers to manage their accounts online and do not have any physical locations. This means all banking activity must take place through a web browser or mobile app, and customers must contact customer services by phone, email, or live chat.
Among people of all age groups who do not currently have an online-only bank account, 23% expressed some interest in using one as their main checking or savings account. Younger people are more likely to have an interest in online-only banks with 42% of non-users in the Gen Z age group saying they would be likely to use one. [6] Civic Science, “Online-Only Banks Are Gaining Ground with Gen Z” https://civicscience.com/online-only-banks-are-gaining-ground-with-gen-z/
More than half of people (56%) don’t trust online-only banks
The majority of people (56%) in the survey say they have low trust in online-only banks with no physical branches, and only 10% say they find these banks highly trustworthy.
Alongside this, 22% of those who don’t currently use an online-only bank say it is because they have security concerns about them, although 52% say it’s simply because they are satisfied with their current bank.
| Level of trust in online-only banks | |
|---|---|
| Level of trust | Percentage of people |
| High trust | 10% |
| Medium trust | 34% |
| Low trust | 56% |
Source [6] Civic Science, “Online-Only Banks Are Gaining Ground with Gen Z” https://civicscience.com/online-only-banks-are-gaining-ground-with-gen-z/
Methodology
A survey of 1,266 adults was carried out in October 2024, asking questions about digital banking, how people use it, and their opinions of it.
Sources
- [1] Statista, “Digital Banking Penetration Rate U.S” https://www.statista.com/forecasts/1285979/digital-banking-penetration-rate-usa
- [2] S&P Global, “U.S. Banks’ Net Closings Climb in Q1 as Branch Network Adjustments Continue” https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-banks-net-branch-closings-climb-in-q1-as-branch-network-adjustments-continue-82027239
- [3] FTC, “Nationwide Fraud Losses Top $10 Billion” https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-public
- [4] Ipsos, “1 in 3 Americans Report Being a Victim of Online Financial Fraud or Cybercrime” https://www.ipsos.com/en-us/nearly-1-3-americans-report-being-victim-online-financial-fraud-or-cybercrime
- [5] Appinventiv, “AI in Banking - How Artificial Intelligence is Used in Banks” https://appinventiv.com/blog/ai-in-banking/
- [6] Civic Science, “Online-Only Banks Are Gaining Ground with Gen Z” https://civicscience.com/online-only-banks-are-gaining-ground-with-gen-z/
