The pandemic has shifted the everyday lives of consumers around the world and alters the ways people choose to manage their money. With these unforeseen circumstances and uncertainty about how to effectively save money, consumers have begun to utilize digital banking and various budgeting apps as a way to better grasp their finances. Continue reading below to learn more!
Millions of Americans are well on their way to rebuilding their finances after the onset of the coronavirus pandemic and the economic recession that followed. However, they can’t do it alone — and it appears that banks and other financial service providers are starting to take notice. A new report now shows that consumers across demographics are gravitating toward digital banking tools and features during the health crisis, due to the range of benefits they offer.
Consumers believe more personalized banking tools will help them improve their saving habits
A previous survey conducted by Coinstar found that about 7 in 10 Americans have improved their budgeting and saving habits during the COVID-19 pandemic. And as life returns to a semblance of what it looked like pre-pandemic, the survey reveals that they plan on strengthening this financial foundation in the months and years ahead.
For instance, the report indicated that 84% of consumers currently use digital tools to help them save money. Additionally, it was found that people would be interested in having banking features that provide a personalized look at their spending habits and overall financial situation. More specifically, more than 4 in 10 respondents:
- Believe personalized banking data, such as their spending habits, would help them make changes in how they spend their money (48%)
- Believe seeing their credit and debit card usage, understanding their cash flow, and reviewing their top spending categories would help them adjust their money management habits (41%)
- Wish their bank provided more personalized offers or information to help them achieve their financial goals and save at their favorite retailers (41%)
Digital banking features offer convenience and safety during COVID-19 pandemic
As one might imagine, technology appears to be the way to go for consumers right now — particularly during a time where social distancing and minimal physical interaction is encouraged. A recent TIAA survey showed that, perhaps as a result, consumers are starting to use their financial providers’ digital tools and their own personal devices to help them better manage their money. Similarly, it was found that 89% of its respondents now use a mobile app to deposit money at their bank, including:
- 91% of men
- 87% of women
- 52% of baby boomers
Consumers are also moving away from cash in favor of safer contactless payment options. Nearly half (47%) said they have used contactless payments in 2021 to avoid physical interactions, while another 73% prefer them for the convenience they offer. Meanwhile, 13% of baby boomer and Gen Z respondents have said they wouldn’t feel comfortable using cash again, even after the pandemic — suggesting the possibility of a completely cashless future for Americans.
Methodology: The survey gathered information from 2,005 men and women between the ages of 18-57+ from April 23-26, 2021. The generational breakdown for this survey sample is as follows:
- Gen Z: 18-24
- Millennials: 25-40
- Gen X: 41-56
- Baby boomer: 57+