New Study: Consumers Willing to Pay for Mobile Banking Posted by AVCU on 9:48 AM

As reported by the Wall Street Journal, a study of nearly 4,000 U.S. bank app users by S&P Global Market Intelligence reveals a surprising willingness to pay for the privilege of accessing their financial institution accounts via mobile banking. Specifically, 21% of people said they’d pay as much as $3 a month for the service, while up to 40% of people said they’d be willing to pay $1 a month.

In a Federal Reserve survey last year, 53% of American smartphone owners used a banking app, up from 43% in 2011. Smartphone usage went from 44% of people to 77% over that same time. Of the people who don’t use mobile banking, the Fed found that 80% of them said cash and card were simpler, easier, and safer to use.

For those using mobile banking, the most popular activity is to check account balances (94%). Another 48% used it to deposit a check with their mobile camera in the last 12 months, and 47% paid a bill via their smartphones. Notably, some banks do charge for popular services.

On the other side of the coin, a recent FICO survey found that millennials cite fees as the top reason to switch banks, and that they are twice as likely to close accounts and switch institutions.

Read the Wall Street Journal article in entirety.