Guest Commentary By S&P Global Market Intelligence
Banking customers’ shift toward digital channels during the pandemic is likely here to stay
A significant portion of retail banking consumers continue to visit branches less oſten and use their mobile apps more frequently nearly one year aſter the COVID-19 pandemic began, and many anticipate continuing their new behaviors well aſter the pandemic ends.
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Customers Cement New Digital Channels
Nearly 52% of respondents to S&P Global Market Intelligence’s annual consumer mobile banking survey, conducted in February and March 2021, indicated they were visiting branches less frequently since the pandemic began. Among those respondents, more than 65% also were using their mobile apps more frequently during the same time frame.
Te trend of consumers shiſting activities out of branches and toward mobile channels appears relatively stable over the course of the past year. According to our 2020 mobile banking survey, conducted in June and July 2020, approximately 58% of respondents indicated they were visiting branches less frequently because of the
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pandemic. Among them, more than 61% indicated they were also using mobile apps more frequently.
And the new behavior appears sticky; nearly 88% of respondents who were using their mobile apps more frequently anticipate continuing or increasing current usage levels once the pandemic officially ends. Utility features like photo check deposit and money transfers, which were discovered by a significant portion of consumers aſter the pandemic, may be contributing to the stickiness of these new patterns.
Banks of all sizes are feeling the effects of changing consumer tendencies. JPMorgan Chase & Co. announced in its first-quarter earnings call that active mobile user count grew by 9% to 42 million while branch transactions remained suppressed. Michigan City- based Horizon Bancorp Inc. saw monthly digital transactions climb to 74% of all transactions by the end of the first quarter, compared to 57% in 2019.
Younger generations, namely Gen Z, millennials and
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