Online Banking Statistics

15+ New Online Banking Statistics in 2024

Published on: December 13, 2023
Last Updated: December 13, 2023

15+ New Online Banking Statistics in 2024

Published on: December 13, 2023
Last Updated: December 13, 2023

Highlighting a significant shift in traditional banking, online banking statistics offer a lot of data on how people manage their money in the modern world.

27% of Americans use some form of online-only banking, and this number is growing as we speak.

In this article, you’ll see how online banking is reshaping the banking industry and how customers are managing their finances.

Key Statistics

  • Banking apps are the primary method of banking for 39% of consumers worldwide
  • Millennials are the generation that’s the most interested in online banking (79.3%)
  • By 2025, there will be roughly 216.8 million digital banking users in the United States
  • It’s expected that there will be over 3.6 billion online banking users by 2024
  • Digital banking is huge in India, which boasts around 295.5 million users 
  • In 2021, the U.S. accounted for 28.78% of the digital banking market
  • The European online banking market is expected to reach $5.2 billion by 2026
  • Chatbots will save online banks an estimated $7.3 billion
  • China will have a market size of $4.6 billion in mobile banking by 2026
  • Although a bit smaller, the Asia-Pacific market will exceed $615.6 million by 2026

Online Banking Statistics: The Need to Know

Online Banking 749

The world has been going through an ongoing transition with technology for decades.

It seems like a new service is popping up every day.

There’s definitely some truth to this, and the banking industry is seeing an obvious shift of its own.

While bank branches are still needed for a long list of reasons, online banking has reduced their relevance in quite a few ways.

As with most technologies, the younger generations tend to pick up on it first. 

Inevitably, online banking is more popular with young people, but customers of all ages have found use in online banking to some capacity.

The following statistics will provide a general overview of the rising prevalence of online banking.

1. Many People Prefer Banking Apps

Taking a look at the global stage, a sizeable portion of consumers prefer to use mobile banking.

39%, to be exact, and this preference is becoming more widespread as more people catch on to the benefits of online banking.

Also labeled as mobile banking, it allows you to monitor your bank account, initiate transfers, and many other features that draw people in.

It’s understandable to want to keep your eyes on your money, and online banking has made that easier than ever. 

Data supports that most people will choose convenience first, and that’s exactly what online banking brings to the table.

It cuts out the need to actually visit the bank itself, which can be a tasking and time-consuming process.

(MoneyTransfers)

2. Millennials Lead the Way

Among every other generation, millennials are most interested in online banking and its features.

Around 79.3% of millennials have an interest in online banking.

This makes sense as many millennials navigate young adulthood as mobile banking becomes a more prominent tool.

Younger generations, such as young teens, like mobile banking as well but may have less of a need to actually use it in their lives.

When you look at older generations, they take a similar stance that they usualally do with new technology and services.

There are plenty of older people who use online banking, but in the generation of baby boomers, their figure only comes out to 33.8%.

It’s true that diving into online banking for the first time can come with a learning curve, and many older people don’t care to go through that process.

They see in-person banking as something that isn’t broken, so why fix it? Nevertheless, in-person banking will become less of a need as online features become more self-servicing and intuitive.

(BankRate)

3. Digital Banking Users in the U.S.

Focusing on users in the United States, it’s expected that there will be roughly 216.8 million online banking users by 2025.

This particular angle of the industry is seeing rapid growth as more people are starting to prefer online banking over traditional methods.

In the chart below, you can get a better look at how the number of digital banking users in the U.S. has grown over time.

image 2

Although it’s relatively incremental, user interest is growing for online banking.

The efficiency it offers can’t be argued with, and most people value their time more than anything.

Remember that this is only the U.S. market.

It won’t take long before online banking becomes the preference for most people in developed parts of the world.

(MoneyTransfers)

4. Total Online Banking Users

All throughout the world, more and more people are picking up online banking as their go-to solution to manage their money.

The U.S. may contribute a couple hundred million to this pool, but the number of global online banking users is expected to surpass 3.6 billion by 2024.

It might sound like a bold claim, but it’s entirely possible, as many people don’t hesitate to transition to online banking whatsoever.

Of course, online banking is more popular in certain parts of the world, but most people truly appreciate the efficiencies it offers.

Here’s what user numbers for online banking look like in different parts of the world:

  • Europe = 361.7 million
  • China & Far East = 805.1 million
  • Latin America = 109 million
  • Rest of the World = 387.3 million

Online banking isn’t just a small subsection of the banking industry; it’s on its way to becoming the dominant force.

Some might argue this will lead to many physical branches shutting down, which isn’t so outlandish.

It wouldn’t be the first time technology has removed the need for any kind of physical interaction to get the help you need.

(MoneyTransfers)

5. Digital Banking is Highly Popular in India

Many different global trends and interests ripple throughout India.

If the population decides to start adopting something new, they tend to come with quite a few numbers due to their population alone.

There are roughly more than 1.4 billion people in India, and roughly 295.5 million of them use digital banking services.

India has also been working on an infrastructure to support more digital payments moving forward.

This has led to increasing interest in online banking in this part of the world.

Like anywhere else, it’ll take some time before online and mobile banking features become the norm.

It isn’t uncommon for India to adopt new technologies, and in many ways, they’ve been known to incorporate new ideas faster than other parts of the world.

Nevertheless, based on the size of India’s population, we can expect them to be major players in the growth of online banking worldwide.

(G2)

Market Player Statistics

Online Banking 750

What generally promotes change and advancement in technology are a handful of leaders.

These leaders are generally found in driving forces in technology, such as the U.S., China, Europe, and many other developed parts of the world.

In the next few sections, we’re going to focus on angles like market share, financial costs, and industry growth.

Following the money trail and dominant forces in the market can provide a good look at what can be expected in online banking moving forward.

6. The U.S.’ Share of the Online Banking Market

A prominent year for the U.S., the online banking market in 2021 for this region was worth $4.3 billion at the time.

This accounted for 28.78% of the market share as well.

You can assume Covid played a part in some of this, as it forced many people to resort to online banking features.

Overall, it shows how quickly the market has grown in just a few years.

The pandemic had a way of shifting people to be more reliant on technology, and this is only becoming more common as time goes on.

No matter how power shifts in the online banking market, the United States will always play a key role.

Keep in mind that many different factors play into a country’s market position, but most people in the U.S. are already using online banking to some extent.

(G2)

7. Europe Isn’t Far Behind

On the other side of the water, Europe is also in the middle of transitioning to more online banking services.

By 2026, it’s expected that the European market in this realm will reach roughly $5.2 billion.

Online banking growth will look different across Europe, with Germany being one of the leaders in adoption rates and market growth.

For example, in the online banking market, Germany is expected to grow at a CAGR of 14.5%.

We won’t see a 100% transition to online banking as physical branches will always be needed.

However, when it comes to the preferences of consumers, most people would rather not have to visit the bank.

Many people see it as a time-wasting hassle in the age of being able to do it yourself from your home with a smartphone.

(G2)

8. Online Banking Helps Banks Save Money

Everyone may not be for this wave of interest in online banking, but those on the other side of the coin aren’t arguing.

Enough data has surfaced to support the fact that online banking saves banks a lot of money in more ways than one.

A money-saving aspect that stands out is the use of chatbots.

Many users are able to get the help they need without having to speak with an actual representative.

This has led to $7.3 billion in savings for online banks.

This is enough incentive to catch the attention of other organizations who haven’t realized the true benefits of online banking.

It may seem like there’s heaps of data available, but the truth is that the online banking industry is just getting started.

(MoneyTransfers)

9. Online Banking Market Growth in China

You can’t talk about growth in technology without mentioning China.

It’s projected that by 2026, the online banking market in China will be worth $4.6 billion.

This also comes with a compound annual growth rate of 19.9%.

Of course, this could potentially change as time moves on, but it’s evident that China will be a prominent player in the growth of the market.

Regardless of where you come from, most people see the benefits of online banking.

However, for global adoption to take place, it’ll require a bit more education on the matter.

Humans notoriously fight against change.

Although in-person banking will still be around, these services may become less accessible due to the increase in online banking.

In places like China, in-person banking will inevitably be the minority, as most people would rather manage their money from their phones.

(G2)

10. Market Growth in the Asia-Pacific

Outside of the U.S., Europe, and China, the Asia-Pacific is close behind.

This region considers areas like South Korea, India, and Australia, to name a few.

By 2026, the Asian-Pacific online banking market should reach somewhere around $615.6 million.

This may be a fraction of the figures mentioned above, but it shows a growing interest in online banking on a smaller scale.

You can also see how preferences in online banking are shifting in essentially every developed part of the world.

It’s proven time and time again that younger generations are quick to adopt new technologies.

This is partly what makes new technologies seem to come out of nowhere while introducing a learning curve overnight.

Even if this poses a few struggles for some individuals, it won’t stop progress on a global scale.

Online banking will only become more relevant worldwide, and the Asia-Pacific is currently ramping up its infrastructure to promote online banking.

(G2)

Online Banking and its Demographics

Online Banking 751

Taking stock of the current state of mobile banking considers more than just finance and increasing user numbers.

It’s also helpful to break down the fine print in demographics, as certain groups are more engaged than others.

You can assume that young people are a driving force for online banking, but nearly every generation sees the benefits of the technology.

This isn’t always the case, and online banking brings a very diverse group of users as it’s a tool that serves anyone with a bank account.

11. Interest in Online Banking Between Generations

As time goes on, online banking will become more of the norm for everyday finances.

It’s simply easier to deal with, so most people will lean towards this option as adoption rates for the technology increase.

Interest in online banking is bound to vary between each generation. 

The stats below specifically focus on mobile banking usage among different generations.

Keep in mind this data stems from a specific study created by Insider Intelligence.

Here’s the percentage of each generation that makes use of mobile banking:

  • Millennials = 97%
  • Gen X = 91%
  • Baby Boomers = 79%

Gen Z is likely to have nearly a complete adoption rate as this generation grew up with smartphone technology.

Their first choice when it comes to banking will be online.

In many ways, younger generations don’t even see the point of having to visit a physical bank branch.

Interestingly, this data can get a bit more specific if you look at it from an age group perspective.

Data based on generation considers some pretty broad age groups.

If you slim it down a bit, outlooks on digital banking offer more details.

(InsiderIntelligence)

12. Interest in Online Banking by Age Group

Considering that 35% of all consumers worldwide prefer digital-only banking, it’s time to start paying attention to this technology.

This number is still only a fraction of the population, but the rate that it’s increasing is hard to ignore. 

Nevertheless, varying age groups view online banking differently, with some preferring it more than others.

The table below highlights the percentage of different age groups that lean toward digital-only banking.

Age% That Prefers Online-Only Banking
18-2421%
25-3524%
35-4429%
45-5418%
55-648%
All age groups21%

Regardless of which age group you look at, only a fraction of the population prefers online-only banking.

This shows that we’re still going through a global transition with the technology.

While these percentages are guaranteed to rise over time, the banking industry won’t see them reach 100%.

Physical bank branches will always be needed for a variety of reasons, as online banking isn’t reliable 100% of the time.

There are many circumstances where a bank teller or representative of some type will be required.

However, this isn’t to say that many traditional services in bank branches can’t be translated into the digital world. 

This has been happening for years now, but the features and capabilities of online banking are more intuitive than they’ve ever been.

Now that it’s easier to utilize online banking in everyday life, more people are starting to show interest in the technology.

(G2/BusinessWire)

13. Online Banking vs. Mobile Banking

When you compare data points with studies done by other organizations, some people spend more time with online banking rather than mobile banking.

Although each share the same space, they don’t deliver the same experience.

Online banking refers to all of the services you can access on a standard web browser.

Mobile banking refers to the many applications focused on the banking industry.

This comes with many different unique banking experiences, but it isn’t the preference for everyone.

The table below splits the percentages between those who prefer online banking and those who spend more time with mobile banking.

AgePrimarily use mobile bankingPrimarily use online banking
15-2474.1%6.3%
25-3469.4%12.9%
35-4460.5%18.4%
45-5449.1%22.8%
55-6433.2%27.3%
65+15.3%28.2%

It may seem like these data points don’t add up with other demographic data above, but it’s important to remember it’s a different study with a different focal group.

Nevertheless, regardless of the age group, most people lean toward mobile banking.

Regardless of the generation, most people have access to a smartphone.

Once more consumers caught on to the benefits and ease of use around mobile banking, there has been an increasing preference ever since.

(BankRate/FDIC)

14. Digital Banking Preferences by Ethnicity

Aside from varying generations and age groups, data surrounding online banking preferences change based on ethnicity as well.

You’ll find a broad list of variables that play into these preferences, but the table below simplifies it between two focus groups.

Those who mainly use online banking and those who use mobile banking, and breaking down percentages by ethnicity.

EthnicityPrimarily use mobile bankingPrimarily use online banking
Hispanic49.6%11.6%
Asian48.6%25.7%
Black45.4%12.1%
White41.1%25.8%
Native American/Alaskan Native50.6%13.3%
Mixed52.3%20.6%

Once again, even if you categorize it based on different variables, most people tend to prefer mobile banking.

This not only allows you to manage your finances anywhere, but it’s also the most efficient and user-intuitive method.

It’s also the easiest learning curve to changing technologies in this space, as most demographics of people know how to navigate a smartphone and its applications.

(BankRate)

15. Most Users Feel Protected

Online Banking 752

It’s understandable to have security concerns regarding your finances, especially when it comes to new methods and technologies.

Although many consumer concerns surrounding online banking won’t ever fully subside, most users feel that their finances and information are secure.

95% of users feel this way, and much of it has to do with consumer bank accounts being FDIC-insured for up to $250,000.

Although this sounds great for the average person, not everyone is so trusting of the security that’s in place.

It’s known that digital banking is a hot target for cyber threats.

96% of respondents on the matter prioritize security of accounts and funds, while 93% care about securing their personal information.

Everyone likes low fees and ease of use, but security comes first when the topic concerns their money.

(G2)

Final Thoughts

The world may still be going through an increasing adoption rate of online banking, but the infrastructure has been there for quite some time.

It may feel new to some, but the rise of online banking has been a long time coming.

It’ll receive some backlash, and the industry will shift over time, but online banking will inevitably become the new norm in society.

This article focuses on a variety of online banking statistics so you aren’t left in the dark about what’s happening in the digital banking world.

Sources

BankrateMoney TransfersLearn.G2
FdicBusinesswireInsider Intelligence

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Written by Jason Wise

Hello! I’m the editor at EarthWeb, with a particular interest in business and technology topics, including social media, privacy, and cryptocurrency. As an experienced editor and researcher, I have a passion for exploring the latest trends and innovations in these fields and sharing my insights with our readers. I also enjoy testing and reviewing products, and you’ll often find my reviews and recommendations on EarthWeb. With a focus on providing informative and engaging content, I am committed to ensuring that EarthWeb remains a leading source of news and analysis in the tech industry.