Online banking allows people to manage their finances, transfer money from one point to another, or even pay their bills online from the comfort of their mobile phones. 

In this article, we will look at the key statistics that define the number of online bank users and other things you need to note.

So, how many people use online banking today? Let’s find out!

Key Statistics

• Global online banking users are expected to exceed 3 billion people by 2024
• Online banking surfaced as early as the 1980s
• Approximately 73% of people worldwide use online banking at least once a month
• The number of US online banking users will reach more than 200 million by 2025
• 95% of bank users believe that online banking will keep their money secure
• 80% of people prefer using online banks than visiting bank branches
• Online banking helped more than 60% of consumers to have a better awareness of their financial state

How Many People Use Online Banking?

1. Global Online Banking Is Projected to Boom to 3 Billion by 2024!

Due to the COVID-19 pandemic in 2020, online banking became the bread and butter for numerous business owners and consumers. 

According to a Juniper Research report, banks have been heavily revolutionizing their firms to a digital extent.

This resulted in a projection of 3.6 billion online bank users by 2024, a 54% increase from the accumulated number in 2020 which is 2.4 billion. 

One of the main drivers of the growth is the rapid rise of digital-only banking and the continuous digital transformation of several banking firms.

Furthermore, some banks are looking forward to adding Artificial Intelligence to their platform to elevate their ranking in the financing industry.

(Juniper Research)

2. Online Banking Might Be Older than What We Expected

You may have thought that online banking was still a baby at age, but it has been around for more than 40 years already.

One of the most controversial developments of banking is how it evolved from traditional to digital.

The Internet and mobile devices paved the way for online banking to emerge.

One of the first banks to start their experiments in online banking was the Stanford Credit Union dating back to 1994.

Nowadays the spread of online banking and transactions is unstoppable as several banks have no physical branches in several countries.

(UBS, MoneyTransfers, Investopedia)

3. Security First Network Bank (SFNB) Is the First-Ever Online Bank

In the 1990s, the birth of the Internet was widely commercialized and traditional banks began to look for ways to expand their services online. 

One bank in particular was able to attain this feat and created a huge difference in the upcoming evolution of online banking, Security First Network Bank (SFNB).

SFNB was the first fully functional direct online-only bank that was insured by the Federal Deposit Insurance Corporation.

 The bank was able to kick start its operations on October 18, 1995, allowing bill payments and balance checking for all its bank customers.

(Investopedia, MoneyTransfers)

4. 73% of People Globally Use Online Banking Monthly

Balance inquiry and money transferring are the most usual purposes for mobile banking apps.

According to survey findings from Deloitte Insights, approximately 73% of the respondents worldwide use digital banking once per month.

Meanwhile, 59% of the users find online banking for purchasing a product, transferring money domestically and internationally, and updating their account information in general.

Deloitte’s data also showed there is no generational distinction in how often each uses online banking.

This means that baby boomers check their online banks just as much as millennials do.

(Deloitte Insights, safe at last)

5. U.S. Online Bank Users Will Exceed 200 Million by 2025. 

Online banking in the US is seeing rapid development due to the fast-growing and economical structure of the finance sector. 

According to online banking statistics, the number of online banking users will continue to expand by 2025.

However, the rate of growth of upcoming new users is slower compared to the previous years.

The adaptation of millions of US consumers who already utilize the online banking feature is one of the main drivers of the slow-paced growth.

Perhaps adding new feats to each online banking app will do the trick.

(Statista)

6. Over 90% of Users Are Confident that The Bank Will Secure Their Data

Opening an online bank requires using your data to fully disclose your bank application.

With that said bank platforms are tightening their security and heightening their transparency to gain the trust of their customers.

Despite the data-leakage scare that lurks in numerous banks, a study showed in 2019 that approximately 95% stated that they can sleep well at night and do their daily chores without the fear of personal data being breached.

The statistics also show that 66% of the users are fully satisfied with their bank and its online banking services.

(Consumer Affairs, safe at last)

7. 80% of Bankers Would Rather Use Their Apps than Visit a Physical Branch

The evolution of technology allowed consumers ease of access to their bank accounts without going to physical branches. 

A survey from Provident Bank states that approximately 80% of online banking users would just open their banking application and complete their financial routine rather than go to the branch itself.

This just proves that using online banks to check our balance or even make a purchase is much easier than going to the bank itself and making a transaction.

(Consumer Affairs, safe at last)

7. Financial Awareness Is the New Trend as Online Banking Is Your Friend

Online banking not just provides security for your hard-earned money but it also helps you gain financial awareness throughout. 

A survey done by the United States in 2018 shows that 62% of the respondents gave them a clear view of their financial situation.

41% of online banking users have fewer concerns about managing their finances.

About 38% of the respondents gained further knowledge of the services and other features that their banks provide.

And lastly, 34% of the users are sure of their capabilities in making the right financial decisions.

In conclusion, the data shows that having an online banking app on your phone could help you balance your finances and make you a better decision-maker.

(Statista)

8. Nearly 89% of US Consumers Use Online Banking

The usage of online banking in the majority of the United States is particularly high.

According to a Mobile Competitive study done by Insider Intelligence, approximately 97% of millennials use online banking. 

Most of the bank institutions finally caught up with the desires of their consumers through the transformation of their digital apps.

Despite the generational differences, mobile banking is becoming a vital player in their financial journey.

With that said, the constant motivation for banks to keep up with trends and the circulating platform of capital in the market is surely a great feat each online banking user should expect.

(money transfers, Insider Intelligence)

9. Europe Doubles up Online Banking Users from 2017 to 2018

Europe is one of the fastest developing continents worldwide.

More users in the European region slowly showed dominance in the technological platform.

In addition, mobile phone users from 2007 to 2018 grew faster not just in Europe but worldwide.

Over time, users became tech-savvy, and eventually, massive smartphone usage skyrocketed.

After online banking was introduced, users began to try its capabilities for their finances.

Back in 2017, approximately 25% of bank consumers downloaded bank apps and capitalized their finances.

The expectations didn’t go as planned at first for the European banks.

But on the bright side, the number grew exponentially and doubled to 51% in 2018.

During that period, the most downloaded online banking app was Revolut.

(money transfers, Eurostat)

10. Top 3 Highest and Lowest Downloads of Mobile Banking by Country in The European Region

The statistics of online banking in these countries prove how Europe is taking its financial platform to the next level.

Moreover, people pushing each other through digital services is one of the main drivers of the adoption rate.

Here is a quick view of the top 3 highest percentages of countries with the most digital banking customers:

1. Denmark with approximately 90% of its consumers uses online banking.
2. The Netherlands with an estimated 89% of its consumers uses online banking.
3. Finland with an accumulated 87% of its consumers uses online banking.

On the other hand, other countries would rather prefer going to physical and traditional banks than using their online banking applications. 

Listed below are the top 3 lowest percentages of countries with the least online banking users:

1. Cyprus with only 28% of its consumers uses online banking.
2. Greece with about 25% of its consumers uses online banking.
3. Romania with only 7% of its consumers uses online banking.

(Eurostat, Money Transfers)

Conclusion

Online banking is a great financial tool that helps numerous individuals on every platform organize their finances.

With banks and institutions innovating and transforming the world of banking in such a simple way, transactions and agreements could be done with just a snap of a finger.

The statistics on how many people use online banking show the technology is revolutionizing not just one company but the whole finance industry in general.

Sources

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