MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Today’s young adults are the most likely to carry their bank in their pockets – in the form of a smartphone. And a growing number of older adults are likely to join them in the coming year.
Those are among the findings of Intuit Financial Services’ Fourth Annual Financial Management Survey, which revealed that 18-32 year olds are three times more likely to adopt mobile banking than Gen X, baby boomers and seniors. Nearly one in four Americans currently uses mobile banking, and another 17 percent plan to try it in 2012.
The survey from Intuit Inc. (Nasdaq: INTU) found that many people remain loyal to their financial institutions; 45 percent said they have been a customer of their current bank or credit union for more than 10 years. But loyalty may have its limits. Thirty-six percent of those surveyed said they plan to switch, or already have switched financial institutions due to new service fees.
Digital Trumps In-person
Intuit’s findings also revealed that Americans in growing numbers prefer to go online with their financial institutions rather than make in-person visits. Thirty-eight percent of respondents already use the online services provided by their bank or credit union to manage personal finances. In addition, 33 percent said they would switch financial institutions for one that offers solutions that give them a better customer experience.
“Banking on customer inertia is not a viable growth strategy,” said CeCe Morken, president and general manager of Intuit Financial Services. “Financial institutions should instead lead by engaging customers on their terms and delivering the experience they define.”
Engaging Customers on Their Terms
While not owning a smartphone has kept many from mobile banking, a growing number of people now have one. Forty-one percent of respondents report owning a smartphone, and 23 percent said they use a mobile banking solution.
Among those using mobile and online solutions at their financial institutions, this year’s survey also found that:
- 65 percent access their account information through the Internet, while 28 percent use a mobile application from their bank or credit union.
- 6 percent use mobile devices to remotely deposit checks. Among those using the service, 54 percent use it at least once a month; 39 percent use it weekly.
- 64 percent said that tracking account balances is the most important feature they currently use while banking online, followed by paying bills (34 percent) and transferring funds (28 percent). Yet, 70 percent say they wish they see their complete financial picture and manage and pay all of their bills in one place, regardless of the source of information.
“Regardless of age, each customer expects to connect with their financial institution in their own way,” added Morken. “Whether it is online, mobile or most likely both, financial institutions must provide the right technologies if they are to truly engage their customers. Our data shows improving engagement can naturally increase retention and cross-sell opportunities, and that’s increasingly important as financial institutions adjust to the current regulatory environment.”
During the past year, an Intuit study of more than 50,000 mobile banking customers across twelve financial institutions showed that people tend to interact, on average, 45 percent more often with their financial institutions when using online and mobile solutions in combination, as opposed to online alone. Customers that used both online and mobile solutions also tended to hold, on average, nine percent more deposit and loan accounts than people who didn’t use digital solutions at all.
Survey Insights on Banking.com
More detailed insight from Intuit Financial Services' Fourth Annual Online Financial Management Survey is available at Banking.com, an online resource provided and managed by Intuit Financial Services. Banking.com provides a dynamic platform for timely industry information and relevant discussions important to bank and credit union decision makers and executives at financial institutions across the country. For more information, or to discuss the findings of the survey visit Banking.com/Surveys.
The Intuit Financial Services Online Financial Management Survey was independently fielded by Decipher Research for Intuit Financial Services in October, polling 1,000 adults across the United States.
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by offering innovative online and mobile banking solutions that make it easier for consumers and businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.
About Intuit Financial Services
Intuit Financial Services helps banks and credit unions grow by offering innovative online and mobile banking solutions that make it easier for consumers and businesses to manage their money. Applying more than three decades of customer insights and innovation to design its products, Intuit provides solutions that help financial institutions achieve higher customer engagement and profitability. Learn more at www.ifs.intuit.com.
Intuit, the Intuit logo, Intuit Financial Services, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of their respective owners and should be treated as such.