Roughly 90% of consumers are banking via a digital device
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Financial institutions are in the process of digitally transforming their brick-and-mortar businesses, as a growing number of consumers turn to digital tools and mobile apps for their banking needs.
Instead of going to their banks in person, almost 90% of consumers in the United States were interacting more frequently with their financial institution digitally, according to the MX 2019 Ultimate Guide to Digital Transformation in Banking.
This increased digital activity of consumers drove mortgage lenders to invest in going digital. Earlier this month, Movement Mortgage announced choosing fintech firm Infosys to lead its digital transformation initiatives and assist in the development of its mortgage industry-specific products.
The report showed that 94% of consumers were expecting better product deals such as mortgage and auto loans from their banks. Moreover, 77% of the respondents preferred to receive financial advice from their financial institution through a digital device.
While only 4% of consumers said they completely distrusted financial institutions with their data, 71% have been frustrated over an unclear description during a bank transaction.
"The financial industry is going through a massive digital transformation as consumers turn to digital tools and mobile apps to do what was traditionally done within the walls of a bank or credit union," said MX Chief Marketing Officer Don MacDonald. "Financial institutions that use data to better understand their customers and deliver breakthrough digital experiences will be rewarded with greater customer loyalty, engagement, and ultimately higher deposits and greater share of wallet."
The report also revealed that 25% of consumers have three or more financial or banking apps on their phones. Over 84% of respondents use mobile banking weekly, with 54% utilizing it every other day and 26% daily.
