About 85 percent of Americans say they will use digital tools to conduct some or all financial transactions after the COVID-19 pandemic, according to a recently released survey report from KeyBank. However, Millennial and Gen Z consumers (which this study defined as those under age 35) prefer a combination of digital and in-person banking more often than […]
About 85 percent of Americans say they will use digital tools to conduct some or all financial transactions after the COVID-19 pandemic, according to a recently released survey report from KeyBank.
However, Millennial and Gen Z consumers (which this study defined as those under age 35) prefer a combination of digital and in-person banking more often than older Americans, who would rather exclusively use digital-banking tools. That’s a “surprising” discovery for technology-forward younger generations, according to the KeyBank 2020 Financial Resiliency Survey, which the Cleveland, Ohio–based bank released Feb. 23. KeyBank has a significant presence throughout Central and Upstate New York, with its branch network and ATMs.
The survey also found more than one- quarter (28 percent) of people under age 35 say they want to create and update a budget with the help of a professional powered by technology. By contrast, just 6 percent of people 50 and over said the same. Rather, 51 percent of people age 50 and over would prefer to create and update a budget on their own using digital-banking tools, compared to 44 percent of people under age 35 who agree.
The 2020 Financial Resiliency Survey polled more than 1,200 Americans on their financial feelings after nearly a year of living through a pandemic, finding that 44 percent of people are “extremely comfortable” with digital-banking tools, “reflecting a massive shift” towards digital, “as our lives become increasingly virtual during the pandemic,” KeyBank said.
Generational preferences in digital banking could be a result of younger Millennials and Gen Zers experiencing financial firsts — such as budgeting and bill pay — during a “tumultuous” year, per KeyBank.
“The pandemic has accelerated the adoption of online and mobile banking, and consumers are increasingly comfortable with using digital tools to manage their money,” Jamie Warder, executive VP and head of digital banking at KeyBank, said. “The advantage of digital banking tools is that they are not one-size-fits-all solutions. With widespread economic fallout resulting from the pandemic, it is understandable that younger Americans are seeking guidance from trusted financial advisors to help them navigate uncharted waters, in addition to technology-enabled services that allow them to bank on their own terms. The future of banking includes both digital tools and human expertise.”
This survey was conducted online by Schmidt Market Research with 1,204 respondents completing the survey between Sept. 30 and Oct. 2, 2020. The target audience was between the ages of 18 and 70, and those who have sole or shared responsibility for household financial decisions.