Online banking’s popularity continues to soar in U.S.

27 April, 2015 (16:56) | Blog | By: admin

By Zlati Meyer, Detroit Free Press

Banking with a computer or mobile device is more popular than phone or branch banking, new survey finds.

Online banking’s popularity continues to grow and now is done more than phone and branch banking, according to a new survey.

Thirty-six percent of banking is done online and 29% on a mobile device, BioCatch found, polling people in the United States and the United Kingdom. Branch banking is preferred by 26% and telephone banking is down to less than 10%.

Most use Android smartphones, including 66% of men and women in America. In the U.S., more women than men use online banking daily — 37% to 30%.

The survey determined that checking account information, charges and billing information is the most-performed online banking activity at 69%, followed by making a transaction, like paying a bill or transferring money, at 23% and checking or making changes to an investment portfolio at 85.

Of people who don’t do online banking, 61% cite a fear of hacking and 26% call the login process a hassle.

Respondents also outlined what security measures their financial institutions require of them when they bank online — 43% have to re-enter a password, 20% have to generate a code, 19% have to respond to a security question and 18% have to enter a code sent via text message.

But online banking isn’t without friction. The poll found that 46% people who bank online complained about not being able to do everything they need to online or via mobile devices, 36% about the inconvenience of the login, payment authentication or authorization process and 18% about the not-east-to-understand user interface.

“While users are concerned about security, they are equally frustrated by current security measures and the limitations that banks are placing on their online functionality,” the study concluded. “Banks find themselves in a quandary: any increase in functionality must be accompanied by a comparable increase in security, but customers are already frustrated by the authentication procedures that they are currently required to use.”

Jake Holmes, 26, a magazine writer from Birmingham, said he chooses to bank online because of the convenience.

“I’m able to see things up-to-date instantly. I don’t have to wait for my statement to be mailed to me,” he said. “It’s also the fact I can pay my bills wherever I am.”

Holmes admitted he had been very nervous at first about security, especially smartphone apps, but now he finds himself banking more via his Android phone than his laptop.

“It’s definitely different from the days when I had to make sure I had to run into the bank before 6 p.m. and wait in line,” he said.

The survey by BioCatch, an Israel-based behavioral biometrics, authentication and malware detection company, used a representative sample of 600 banking customers from top-tier banks in the United States and the United Kingdom.

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