While Industry Numbers Show Overall Use of Banks Declining, Younger Adults May be Bucking That Trend According to a SWACHA Survey
Dallas, TX, January 17, 2014 --(PR.com
)-- According to a recent Consumer Insights Survey of more than 600 Texans released by Dallas-based SWACHA, younger people between the ages of 21 to 34 reported they are using brick and mortar banks and the services they offer, including walking into local bank branches, going through the drive-through, using an ATM, and logging on to their bank’s website more frequently than their older counterparts.
This fact is surprising considering the recent move by consumers to online and mobile banking.
“Most people assume that the internet is eliminating the need for brick and mortar banks, and the data simply does not support that,” said Dennis Simmons, AAP, CEO of SWACHA. “We have found that those who use online banking at higher rates also use the services at their local bank branch more often, and younger people are leading the way back into the banks.”
This is SWACHA’s third Consumer Insights Survey since launching the effort in 2009.
Young people use brick and mortar banks more than older adults
Of those surveyed between the ages of 21 to 34, 54 percent reported they walk into a local banking branch at least once a month. Older Texans reported walking into a branch at much lower rates, with 27 percent of respondents aged 35 to 44, 29 percent of those aged 45 to 54, 41 percent of those aged 55 to 59, and 37 percent of those over 60 years old who enter their bank more than once a month.
Below is a chart that shows how Texans overall are currently using their banking services.
ATM use and drive-throughs also on the rise for younger adults
In another bit of surprising data, younger respondents reported using their bank’s drive-through services and ATMs at a much higher percentage than those in older age categories. Sixty-two percent of those aged 21 to 34 reported they visit the drive-through more than once a month, while just 54 percent of older respondents aged 35 and older stating they visit a drive-through monthly.
Additionally, younger respondents reported using the ATM more frequently than their older counterparts. While 72 percent of those between the ages of 21 to 34 use an ATM more than once a month, just 61 percent of those respondents aged 35 to 44 and 53 percent of those aged 45 to 54 use the ATM at least monthly.
Websites are banks’ most frequented service
Even though SWACHA’s survey has shown a remarkable 371 percent increase during the past five years in the number of respondents who use a mobile banking application on a cell phone or tablet, from seven percent in 2009 to 20 percent in 2011, and now 33 percent in 2013, the most frequently used banking service by survey respondents is the bank’s website. While nearly everyone between the ages of 21 to 34 visits the bank’s website more than once a month, older respondents visit almost just as often. Only three percent of those between the ages of 21 to 34 visit their bank’s website less than once a month, followed by 13 percent of those aged 35 to 44 and 12 percent of those aged 45 to 54.
“I believe this underscores the importance for banks to get back to the basics and find ways to deepen their relationships with the ‘Twentysomethings’. Their use of multiple service channels presents banks with a valuable opportunity to create longstanding loyal customer relationships with them,” said Simmons.
About the Survey
SWACHA’s online survey of 601 Texas residents was conducted in April 2013, by Decision Analyst with a confidence interval of 95 percent and a corresponding margin of error of +/- 4 percent. Only those respondents who identified themselves as the person responsible for the paying household bills were permitted to complete the survey.
SWACHA-The Electronic Payments Resource®, is one of the largest not-for-profit electronic payments associations in the country with approximately 1,100 members across the Southwest. SWACHA is the resource of choice for financial institutions and corporations in the areas of education, training, payments system risks and knowledge about electronic payments. For more information visit:
Editor’s Note: This is the 6th in a series of releases based on SWACHA’s 2013 Consumer Insights Survey.
Granado Communications Group