Thanks to technology’s rapid evolution, millennials are banking digitally more often than they transact at traditional brick-and-mortar banks. According to Business Insider, the millennial population comprises the highest rate of the U.S. population (at 26%), in addition to topping the employment rate (at 34%). This group will likely rely the most on digital banking, which in turn relies on millennials to expand its growth in the future. Likewise, both millennials (as well as other groups combined) and digital banking systems depend on fintech apps for their growth.
In fact, even premier banks such as Wells Fargo, Bank of America and other leading institutions empower their customers to bank digitally to avoid brick-and-mortar transactions. Citigroup even conducted an intensive experiment to determine how the bank’s year-long fintech unit will advance.
American Banker concluded the following on their website:
[Dan Latimore, the senior vice president for Celent’s banking division] said: “As much as [we] talk about mobile banking, overall penetration of folks who have even downloaded the app, much less actually use it on a consistent basis, is still only at 50% or 52%. There’s a huge spectrum of folks who aren’t digitally mobile — or mobile-ly digital — yet. Bankers want to get them digital to help improve relationship but also lower cost to serve.”
Although fintech apps are evolving at a rapid pace, the customers who would benefit the most from the apps don’t have access to them… yet. However, the world is catching up to the benefits that appeal so much to bankers and customers alike and soon, the digital banking revolution that gives access to a whole bank in the palms of our hands will become a reality for everyone.