MX, a digital transformation platform for banks and credit unions, has released research showing mobile banking engagement rose by 50% since the end of 2019 and that payments on credit card debt decreased by 25% amid the COVID-19 pandemic.
“Americans are turning to mobile banking as a way to take control of their finances and plan for their economic future,” Ryan Caldwell, founder and CEO of MX, said in a press release. “With increased consumer engagement across mobile banking applications, financial institutions have the responsibility to not only deliver a great user experience, but also to provide meaningful advice and guidance that’s critical to the financial well being of consumers, especially during times of economic uncertainty.”
The survey of 1,000 consumers indicated the following:
- More than 70% believe its important to put money away for a rainy day, but less than half of those surveyed save more than 10% of their income.
- More than 50% of those surveyed have gone over their monthly budget just by paying major expenses, like rent, mortgage, utilities or auto loan payments
The study also showed that 60% of those surveyed said their main financial institution doesn’t make them financially stronger, but that could change if they moved toward digital banking.