US consumers are paying more attention to their finances and using the online banking channel more frequently to access their accounts during the current global financial crisis, according to a newly commissioned study conducted by Forrester Consulting on behalf of Fiserv, Inc, a provider of information technology services to the financial industry.
Some 71% of consumers said they are keeping a closer eye on their finances than they did a year ago. Slightly more than three-quarters of the consumers surveyed said they use online banking, with non-users making up the remaining one-quarter. Online banking usage increased far more than any other banking channel, with 28% of consumers indicating they are using online banking more than they did a year ago, and 63% said managing all of their accounts online from one site would help them feel more in control of their finances.
In contrast, only 10% of the 1,009 U.S. consumers surveyed online in October 2008 reported increasing their ATM use, just 9% visit their bank branch more often, 6% are using the bank’s automated phone service more frequently, and 4% are calling customer service more often than they did a year ago.
“In these difficult times, financial institutions are looking for new ways to reach out to consumers and provide value,” says Todd Lesher, division president, Fiserv Electronic Banking Services. “This survey indicates that online banking is still a great opportunity for financial institutions looking to strengthen their ties with consumers. Consumers are using online banking more frequently to monitor their cash flow, manage their finances more actively and save money on stamps. Financial institutions are playing an important role by providing new and innovative online tools to help consumers weather the financial storm.”
60% of consumers say they are spending less than they did a year ago, and 24% reported paying for items with cash more often. To help tighten their belts in response to the financial crisis, 66% of those surveyed reported making a decision to drive less, 27% cancelled vacation plans, and 18% delayed a new car purchase. More consumers also resorted to credit cards and savings to help pay the bills. Thirty-six percent said had tapped savings to help pay bills, and 34% had paid a bill with a credit card in the past 12 months.
Savings deposits were hit hardest by the economic slump. 29% of those surveyed said they had decreased the amounts they had deposited into savings accounts, and 19% said they were putting less money into their checking accounts than a year ago.
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