Mobile Banking Statistics in 2024: Are Physical Wallets Now Obsolete?

The digital revolution has ushered in the era of mobile banking, transforming how financial transactions are conducted. With convenience and real-time access at its core, mobile banking has grown tremendously.

According to recent projections, mobile banking users are set to soar to unprecedented heights, reaching 3.6 billion by 2024. This big number is a sign that mobile banking will play a key role in changing how we bank and handle money in the future.

There’s more to mobile banking numbers than its increasing user base. Continue reading this article for more fascinating facts and data on the mobile banking industry, usage, user demographics, and trends. 

How Popular is Mobile Banking? 

Mobile banking is becoming popular. According to Insider Intelligence, 89% of people reported using mobile banking for transactions. In addition, 77% of Gen Z-ers have reported using this service more than conventional banking.

Its popularity is due to the security systems of online applications, convenience, and overall trendy use.

Mobile Banking Industry Statistics

The need for more secure network infrastructure in various parts of the world has slowed the steady rise of mobile banking. Despite this, more than half of the world’s population now possesses smartphones, helping the banking sector shift toward mobile banking.

Here are industry statistics on mobile banking and how much it’s worth today.

1. By 2024, the global market for mobile banking will be worth $1.3 billion, a growth from $693 million in 2021.

(Dataprot)

Technology has been steadily advancing, and the development of digital ecosystems has outpaced our wildest expectations.

Applications using artificial intelligence (AI) have increased business productivity by 40%. Meanwhile, the Internet of Things (IoT) connections were adopted as well. 

This forecast statistic illustrates the projected expansion of the mobile banking market with the help of continuous technological advancement.

2. As of March 2023, Citi Mobile comprises 1% of users aged 18 to 29.

(Statista, Dataprot)

The Citi Mobile app takes cyber security extremely seriously, employing many methods, including biometrics, to safeguard sensitive and personal data.

Also, users may check their Citi Mobile account summaries even when they aren’t connected to the internet, making it convenient for everyone.

3. Bank of America has 40 million online customers, while Citi mobile banking has 30 million regular users.

(Dataprot)

Bank of America updated its acclaimed mobile banking app in June 2019, including a digital debit card and other features. This card may be used at any merchant accepting Visa and BofA ATMs for all transactions.

BofA has a stellar reputation thanks to its top-notch cybersecurity team, which provides protection and vigilantly checks all transactions for signs of fraud and hacking.

Incorporating an AI virtual assistant into Bank of America’s mobile banking app has also increased usage and satisfaction among existing customers. 

A satisfactory customer experience helped Bank of America gain more regular users than Citi. They are both well-known and reputable companies, but they are within 44.5% of businesses that views customer experience as one of their primary differentiators.

Here’s what users have to say about BofA:

Mobile Banking Usage by Country Statistics

Countries have different user penetration when it comes to mobile banking. One factor affecting mobile banking usage is the use of smartphones. For instance, China has the most smartphone users worldwide. Meanwhile, smartphone usage in North Korea is scarce.

Moreover, each country has its version of mobile banking that defines the experience for locals, affecting its usage. Let’s see the statistics that show these factors in the act:

4. Close to 96% of the Norwegian population accessed online banking sites in 2022.

(Statista)

Apart from Norway (95.84%), Iceland (94.84%) and Finland (94.68%) are countries in Europe with the highest Internet banking usage.

Meanwhile, the lowest rates of online banking penetration were seen in Bosnia and Herzegovina (12.82%), Montenegro (11.35%), and Albania (5.24%).

5. Mobile banking constituted 43.5% of US account access in 2021.

(Dataprot)

The use of digital banking by American customers is on the rise. The percentage of customers who use their mobile devices to access their bank accounts rose from 15.1% in 2017 to 43.5% in 2021.

6. As of 2023, 24% of Brits will have switched to a digital-only bank account, up from 9% in 2019.

(Finder)

In 2023, the data suggests that around 12.6 million Britons (24%) will solely use a digital bank account.

An estimated 5.3 million more Britons (10%) will have transitioned to a digital-only bank account in 2023. By 2028, 42%, or 22.6 million people, will have digital bank accounts.

7. 71% of people from poorer countries have access to mobile banking.

(Worldbank)

A decade ago, just 42% of individuals in developing countries had mobile banking accounts. Now, that number has risen to 71%.

On the other hand, only 51% of adults globally had a bank account about a decade ago. Today, 76% of adults do.

This trend of growing popularity of mobile banking worldwide was catalyzed during the COVID-19 pandemic. At that time, outside movements were limited and physical money was considered unclean.

This trend has also helped the popularity of mobile banking worldwide during COVID-19’s movement limitations and when physical money is considered unclean.

Mobile Banking User Demographic

Consumers and internet users are increasingly comfortable with digital banking. For instance, customers using their mobile devices to access their bank accounts rose to 80%, with around 169.3 million users in the US.

Let’s look at the demographics of this industry and see how it makes a difference.

8. There are 5.44 billion unique mobile users worldwide, with a 29.% forecasted increase until 2027.

(Dataprot, AbdaIslam)

It’s clear now that mobile devices dictate the daily lives of users. The typical individual uses smartphones 63 times every day, and part of that includes using mobile banking apps. 

9. Mobile banking was the primary option for 52.3% of multiracial households.

(Bankrate)

The percentage was 45% among black families and 41% among white households. Meanwhile, 25.7% of Asian households do most of their banking through mobile apps. Thus, mobile banking suits multiracial families' lifestyles. 

Checking account balances, transferring payments, and paying bills via mobile is very useful for busy people, especially for those with families, with little time for traditional banking.

10. Only 15.3% of people 65 or older said that mobile banking was their primary way of banking.

(Bankrate)

On the other hand, based on 2021 research by FDIC, over three-quarters of bank customers between the ages of 15 and 24 reported using mobile banking as their preferred banking method.

These figures show that mobile banking entices younger generations. Meanwhile, only some older adults and the elderly access their bank accounts using smartphones. Their reasons vary, but let’s hear it from the people:

Mobile Banking Trends Statistics

There has been a significant shift in mobile banking trends for 2021. The on-demand economy has altered the way businesses operate. 

Modern Internet banking services provide convenient options in any location. Access to your savings has been made more accessible.

It could start a bigger trend, but let’s look at the recent data below.

11. The cardless approach has risen in popularity (48.1%) since 2020.

(OpenGeeksLab, Gocardless)

Since many individuals end up misplacing their cards, withdrawing cash without using one is a great option.

In the past, using an ATM without a card led to several security concerns. For instance, the Bank of America provides self-service machines, and its developers constantly enhance the devices’ security.

With constant improvement of the system and increased adoption by merchants, both brick-and-mortar and online stores, the cardless approach has been growing in demand.

12. A survey shows 72% of respondents prefer using face verification for secure online transactions.

(Security)

Passwordless authentication is a cybersecurity method that has been gaining popularity over the years.  While passwords with letters, symbols, and numbers can be figured out or reverse-engineered, passwordless authentications verify a user’s identity through biometrics.

Mobile banking apps have started using passwordless authentications, and 64% of the survey respondents say they have used facial authentication to access their mobile banking app.

13. Voice-based mobile banking payments increased by 95% to $40 billion 2022.

(Infopulse)

Although it is still far from mainstream, several banks have started offering voice-based functions, one of which is carrying out voice-enabled payments.

In 2018, transactions settled using voice were worth $2 billion only. After 4 years, transactions made through voice payments increased to $40 billion.

Moreover, the statistics show that younger mobile banking app users enjoy using voice command the most, especially via smart speakers, which 118 million Americans engage with. Here’s how mobile banking users utilize this advancement:

14. As of early 2022, 6.7 million people in the United States have an Apple mobile banking account.

(Apple)

In 2019, Apple launched its Apple Card savings account. Users with an Apple device can utilize it for their banking needs. 

What’s more, Apple Card comes with a 4.15% interest rate, significantly higher than traditional banks' offers.

Today, 6.7 million Americans have an Apple Card account. Moreover, 70% o are millennials, with a higher affinity for technological improvements like this.

15. The 2022 poll shows 25% of uni students use Apple Pay.

(Higher Ed Dive)

There has been a year-over-year growth of 56% in digital wallets like Apple Wallet, which indicates a more significant trend in mobile banking that uses the Apple ecosystem. 

In addition, Google Pay usage among students increased dramatically, doubling from 6% to 12% over a year.

These figures show mobile payment methods appeal to young people the most, as they have the devices for it and understand the system better.

16. In 2020, 73% of students sent money to their schools through mobile payments.

(Higher Ed Dive)

67% of students evaluated the ability to make and manage payments through mobile as important - when explicitly questioned about payment options inside their college or institution app. However, just 23% of students reported making purchases using their campus app.

17. Globally, mobile cryptocurrency banking has reached 23%.

(Arthur D Little)

By November 2021, 18% of Americans and 17% of Europeans have invested in some crypto-asset, with the total market value of all cryptocurrencies reaching roughly US $3 trillion.

Digital currencies are also widely used in Africa, with 7.1% of South Africans and 8.5% of Kenyans using them.

18. More than 150 million people in 42 countries have used Google Pay.

(Earthweb)

This is another form of online payment and wallet that acts as a replacement for traditional money banking and payments. This time, it was developed by Google.

Around 800,000 merchants accept Google Pay as a reliable payment option. About 20% of mobile buyers also use this online payment gateway.

Google Pay competes with other mobile wallets, such as Apple Pay and Samsung Pay. Individuals have varying opinions about them and preferences among these methods.

However, Google Pay and Samsung Pay are more widely available than Apple Pay, which is accessible only to select countries and territories.

Closing Remarks

The statistics demonstrate mobile banking’s rising popularity and widespread usage. With most American mobile banking clients valuing security, comprehensive cybersecurity measures are essential.

With mobile banking becoming more popular among Gen Zs and millennials, cardless and virtual money transactions and biometric authentication like fingerprints have become the new normal.

The data shows mobile banking’s global transformation and is predicted to rise as smartphones dominate our lives, bringing convenient and accessible banking services to more consumers globally.