Consumers are OK with opening a loan account in the app

Nearly two in three consumers are comfortable opening new accounts digitally, compared with less than half who say they prefer to manage their existing loan accounts this way, according to the February 2022 edition of PYMNTS’s ” Account Opening And Loan Servicing In The Digital Environment”. .

This comfort level gap is even greater among Gen Z consumers, who have fewer loan accounts to manage than older generations.

The PYMNTS study also shows that consumers feel slightly more comfortable opening accounts through a mobile app than through a web browser: around 64% of consumers said they were “very” or “extremely” comfortable opening an account through a mobile app, compared to 63% who were comfortable opening an account through a web browser.

Consumers earning more than $100,000 represent the largest proportion of those who said they were “very” or “extremely” comfortable opening an account using a web browser (72%) and a mobile app (74%). Nearly four in five Gen Z consumers (78%) say they are “very” or “extremely” comfortable opening an account through a mobile app, leading the way among our respondents.

The study, a PYMNTS collaboration with Finicity, a Mastercard company, looked at consumers’ comfort level with opening new financial accounts and managing their loan accounts digitally, for example via a web browser or mobile app. , based on a survey of 2,303 U.S. consumers from Dec. 1, 2019. Dec. 6-12.

PYMNTS generally found no significant difference between web browser and mobile app users when it came to handling loans, except among baby boomers and seniors: 40% were “very” or “extremely” to comfortable managing a loan account via a web browser, compared to 25%% who were ‘very’ or ‘extremely’ comfortable managing a loan account via a mobile app.

As with most things these days, convenience is a key driver of growing consumer interest in opening financial accounts online. The study showed that half of consumers would be “more” or “much more” likely to open a new account if they could log into their existing bank and automatically see their financial data provided on the new account rather than be required to provide their proof of identity when opening the account.

The study also showed that 55% of consumers would be “more” or “much more” likely to open a new account if funds were transferred directly from an existing bank or loan account.

Want to know more about what consumers expect from their digital banking experience? Download “Account Opening and Loan Management in the Digital Environment” for the latest information.

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

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