Most Consumers Now Prefer to do Their Banking Online

The days of consumers preferring a face-to-face interaction when it comes to managing their various financial accounts may be over, as new data shows that the majority would prefer to handle their funds remotely.

More than half of consumers – 52 percent in all – said that they use their bank’s website as their primary method of handling their accounts, while only 32 percent said they actually go into their local branch to do their banking, according to a report from the digital and interactive firm Rosetta. Further, 48 percent of respondents said they would do all of their banking online if they were given the opportunity.+

What Do Consumers Use Online Banking For?

Consumers most often used their financial institutions’ online banking services to check their account balances and recent activity, the report said.  However, they also did so to make bill payments, transfer money between their various accounts and get financial information.

The reason many continue to visit their local banks at all is that there are some transactions they cannot complete digitally, though greater capabilities in mobile banking might even help to mitigate those concerns, the report said.

“Cash transactions, such as deposits and withdrawals, continue to keep consumers tethered to the branch,” said Rosetta managing partner Ned Elton. “However, this is becoming less of a factor because people are using credit more often than cash and because of the emergence of alternative payment options, such as PayPal and near field communications.”

Concerns Over Security

However, despite the preference toward online banking, many consumers also expressed their concerns over the process, the report said. The biggest worry, shared by 64 percent of respondents, was that online banking needed more security and privacy features, while 57 percent said they wanted the websites to be easier to follow and more clearly laid out.

Concerns over security and privacy have also been an issue in the mobile banking world, as consumers have routinely believed that these services do not provide the same level of safety as online or in-branch options. However, many have taken to the process nonetheless, and routinely find that their account information is just as safe, if not safer, when being handled by a mobile phone or tablet because of the way data is encrypted on these handheld devices.

Posted in Finance
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