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Chase Research Finds Digital Confidence Among Consumers Has Improved During Pandemic

Chase, the US consumer and commercial banking business of JPMorgan Chase & Co, has today released the findings of its national Digital Banking Attitudes Study— a survey of 1,500 consumers on their use and preferences with banking digitally. Consumers of all ages said that these tools save time and are a safe and easy way to manage their finances from anywhere.

“The pandemic has demonstrated that digital banking is essential for consumers of all ages to confidently manage their finances,” said Allison Beer, Head of Digital at Chase. “Consumers banked digitally more frequently during the pandemic than ever before, and that trend will continue into 2021 and beyond.”

Digital Banking Tools are Integral to Everyday Life 

Fraud alerts, electronic bill payments and mobile deposits are the most important digital banking features according to surveyed customers. But consumers reach for different devices based on the task at hand: 

  • Smartphones are preferred for on-the-go banking needs, like checking account balances. Half of Chase customers surveyed specifically named the Chase Mobile app as a “must-have.” 
  • Consumers find it easier to complete tasks that require more concentration, like paying bills, when they are stationary at a desktop or laptop. 

The Pandemic’s Impact on Banking

COVID-19 required many to bank online rather than in-person:

  • 54 per cent of consumers agreed that they use digital banking tools more due to the pandemic today than they did last year.
  • Based on these trends, consumers are expected to continue using digital banking tools more frequently in 2021. 

Digital Payments Gain Favor Over Cash

Peer-to-peer (P2P) payments, like QuickPay with Zelle, are increasingly being used to send money or to split bills. People appreciate that these payment solutions make it easier to track spending in a way that’s contactless and convenient. And adoption is growing: 

  • Thirty per cent of respondents have signed up for P2P platforms in the past six months and nearly half (45%) of longer-term users are using this form of payment more often than they did a year ago. 
  • Thirteen per cent of respondents cited avoidance of paper money and physical cards as one of their top three reasons for using digital payment tools during the pandemic. 

Automation on Track to Shape 2021 Savings Habits

Consumers are optimistic despite the challenges faced in 2020. Forty per cent look forward to contributing more to their savings accounts next year, and automated tools will play an important role: 

  • Nearly all users of Autosave, (91%) agree that it is a convenient way to save and 83% said that it holds them accountable to their savings goals.
  • Among customers using Autosave, 84% plan to continue to use the tool as part of their approach to savings next year. And 77% agree that Autosave helps them feel like they are staying on track to meet savings goals. 

This study is based on a Chase survey fielded between October 20-31 and November 9-10, 2020 among 1,500 total respondents ages 18-65 comprised of Chase customers (750 respondents) and non-Chase customers (750 respondents). 

As of Q3 2020, Chase has nearly 55 million digitally active customers, an increase of 6% since the same time last year. Customers now use Chase QuickDeposit for 40% of their check deposits, up from 30% before COVID-19, and more than half of customers now apply digitally for mortgages, double the level from Q2 2019. 

Beer added, “The pandemic has accelerated digital banking adoption across age groups. Consumers are banking anywhere and everywhere, and feeling more confident than ever with digital banking tools. A few key findings from our Digital Banking Attitudes Report include: 80% of respondents are using a combination of smartphones, desktop/laptop for digital banking activities, with the top three features being fraud alerts, bill pay and mobile deposit and four out of five Chase customers we surveyed prefer to manage their finances digitally rather than in-person, with half of Chase customers citing in our study the Chase Mobile app as a “must-have.”

“We saw that smartphones are preferred for banking needs that are more on-the-go, like checking account balances, while the stationary nature of a desktop or laptop is often selected for more detailed needs, like paying bills.

Author

  • Gina is a fintech journalist (BA, MA) who works across broadcast and print. She has written for most national newspapers and started her career in BBC local radio.

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