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Statistics about mobile banking in the US show that security is the most in-demand mobile banking feature among average American users. This is because regulators cannot monitor the mobile money ecosystem as a whole following a record number of big-tech security incidents, including the massive Capital One data breach.
For promising startups, breaking into the mobile banking market is an iterative process that requires an in-depth understanding of the US mobile banking landscape. If you think your banking app is secure, maybe you’ll reconsider after you’ve looked into the following mobile banking statistics.
Mobile Banking Stats for 2023- Key Findings
- About one in every 20 fraud attacks is associated with a rogue mobile app.
- In January 2023, there were 5.44 billion unique mobile users worldwide.
- The total number of unique mobile users worldwide grew by 168 million over the past 12 months.
- The global mobile banking market will grow from $692.5 million in 2021 to $1.3 billion by 2028.
- 57% of millennials and 64% of Gen Z have a financial account with a nontraditional institution.
- Online banking in Asia is expected to reach nearly one billion users by 2024.
- The total value of mobile device payments reached $1 trillion in 2023.
- The US will have around 216.8 million digital banking users by 2025.
Mobile Banking Market Size for 2023
The increase in demand for self-service and the personalization of products and services has fueled the growth of the mobile banking market. Technological advancements have resulted in various valuable features in mobile banking: real-time customer assistance, user-friendly interfaces, and immediate transactions.
But mobile banking usage statistics over the years show a significant need for more secure network infrastructure in some parts of the world, which has slowed down the expansion of the mobile banking market.
Despite that, banking trends have swung firmly in the direction of mobile banking now that more than half of the world’s population owns a smartphone.
1. The global mobile banking market will grow from $693 million in 2021 to $1.3 billion by 2024.
Digital ecosystems have expanded beyond our imagination. In 2019, smartphone technology was boosted with AI-based applications and IoT integrations. This statistic shows the potential growth of the Mobile Banking Market over the forecast period.
2. Citi Mobile, Bank of America mobile banking, and Chase mobile are the best mobile banking apps as of March 2023.
Citi mobile app is very secure, as it uses several layers of security, such as biometrics,
to keep your information safe. And it’s easy to use with user-friendly features that make it very
accessible, especially for those not tech savvy; customers can access their accounts summary offline.
Bank of America e-banking is known for its outstanding cybersecurity team that delivers comprehensive security 24/7, continuously monitoring transactions for suspicious activity.
3. In 2019, Bank of America introduced an AI-driven chatbot with credit card debt reduction insights and card security updates.
Meet Erica, Bank of America’s new virtual financial assistant.
Erica is an AI-driven chatbot that provides users with predictive analytics to make using the mobile banking app much more effortless. The more users interact with this AI-driven chatbot, the more data it collects and the better it becomes at providing personalized assistance.
Bank of America’s mobile banking statistics in 2019 show that the mobile app featuring Erica amassed more than a million users within two months of its launch.
If you ask Erica about your credit score, she will provide you with a detailed report and a personalized video that will teach you more about your money habits and how to improve them. Moreover, she gives security tips and notifies users if suspicious activity is spotted on their mobile banking accounts.
4. Bank of America continues to be an industry leader, with 30 million active users of its mobile banking app and more than 40 million online banking customers.
Bank of America mobile banking statistics show that introducing an AI virtual assistant will drive user growth and improve user experience.
In June 2019, Bank of America launched a digital debit card and other improvements to its celebrated mobile banking app. Customers can use this card to shop online, pay in stores, or withdraw cash and make deposits at Bank of America ATMs.
Bank of America e-banking is known for its outstanding cybersecurity team that delivers comprehensive security 24/7, continuously monitoring transactions for suspicious activity. Mobile banking statistics show that customers are pleased with the bank’s app and how it protects their data.
Mobile Payment Usage
The near-universal presence of mobile devices has made banking far less tedious than it was in the days of queueing up at the local branch during your lunch hour. As you’d expect, the rapidly increasing number of mobile consumers has also fueled the growth of mobile international payment services.
But consumers still hold the key. Here are some mobile banking penetration statistics that show how mobile users have reacted to this change in payment systems.
5. In January 2023, there were 5.44 billion unique mobile users worldwide.
It’s clear by now that mobile devices dictate our lives.
Mobile app usage statistics show that the average person checks their phone 63 times daily, including mobile banking. Statistics show that more than two-thirds of the world’s population use a mobile phone. If world mobile banking statistics are to be trusted, we can expect these numbers to continue rising.
6. The total value of mobile device payments reached $1 trillion in 2023.
A Square survey questioned 1,000 consumers aged 18-34 to learn more about mobile banking trends. The findings showed that nearly half of the millennials had made a contactless payment with a mobile device, while mobile banking statistics on usage show that only 26% of older people have done the same.
But researchers have concluded that such a high adoption rate among millennials indicates where the future of US mobile banking is headed. Experts predict that mobile payments will grow at a compound annual growth rate of 29.0% between 2020 and 2027, expected to reach $8.94 trillion by 2027.
Square’s mobile banking USA statistics show that 77% of surveyed consumers who have not used this method of payment list security as their primary reason. This is why researchers have concluded that marketing campaigns focused on mobile banking apps’ security features could drive up future adoption.
7. 79% of smartphone owners have used their devices for online purchases in the past six months.
Mobile devices are becoming more popular for online shopping. Just look at Black Friday sales, when nearly 40% of all purchases were made using mobile devices.
How many people bank online? Given how many people shop on their phones, it’s no surprise that mobile banking app statistics show a steady increase in users. 80% of shoppers have looked up product reviews and compare prices before purchasing the product in a physical store.
Nevertheless, statistics on mobile banking say that many customers – especially older ones – appreciate the brick-and-mortar experience, and a substantial share of the public still needs to be more trusting of mobile banking shopping.
8. Mobile banking UK statistics reveal that this country is the European leader in mobile payments, with 22.6% of European online spending as of 2023.
According to Visa, Europeans aged 55-64 use mobile banking features more often than their US counterparts.
And among Europeans, residents of the United Kingdom lead the way; coming second is France accounting for 17.9%, and Germany, at 16.7%. Mobile banking usage statistics in the UK show that 74% of the country’s residents use smartphone devices and mobile banking apps to manage their finances.
9. Security and fraud are the biggest problems for those who want to make regular mobile payments.
Mobile banking features are becoming increasingly popular, but it still isn’t as mainstream as expected. The latest trends in mobile banking point out that there’s no added value in the form of special incentives from banking institutions. The infrastructure required to enable mobile payments is still evolving. Most importantly, the ever-present threat of fraud and data breaches at banks and credit card companies further fuels consumer anxieties.
Fraud in Mobile Banking
Technological advancements have transformed the mobile banking marketplace and changed the way people bank for the better. But with the convenience comes heightened threat levels. Hackers track cashless and seamless payments, which means the security of your data – and your money – ultimately depends on the level of defense your bank employs.
The following mobile banking statistics on frauds make both financial institutions and customers anxious about any digital conversions and with good reason.
10. Mobile eCommerce will account for 47% of all retail sales online in 2023, up from 41.8% in 2022.
Mobile commerce is a subset of eCommerce. Many people claim it is the future, and with good reason. With just a few taps on their mobile devices, consumers can enjoy the benefits of mobile banking.
Global mobile banking statistics show that mobile eCommerce makes up almost half of all online retail purchases.
Unfortunately, the mobile banking ecosystem is not regulated and monitored the way it’s supposed to be. Mobile devices are becoming a prime target for fraud, which could stop consumers from becoming a part of this positive change.
11. Mobile app fraud transactions increased by over 600% from 2015 to 2018.
Mobile app fraud soared between 2015 and 2018. A study by RSA showed that mobile apps were the source of 39% of fraudulent online transactions in 2018, up from 5% in 2015. Overall, mobile banking statistics from the USA show that the occurrence of fraudulent transactions originating from mobile apps grew an astonishing 600% during this period.
Mobile banking technology trends show that fraudsters use social media to share information and advertise their virtual stores where they sell stolen data. RSA advises consumers to be wary of responding to unexpected emails and avoid any messages from apparently “legitimate organizations” on social media platforms.
12. Three of every five fraud transactions originated from a mobile browser.
Globally, worldwide mobile banking statistics reveal that fraudulent activities flourish across all devices and regions. Most attacks come from Trojan horses, financial malware, brand abuse, or corrupted mobile browsers.
These mobile banking trends are a warning sign for all financial institutions to step up their game. One suggestion is to improve the customer authentication process, reducing the number of accounts. It would also minimize the escalation of this type of attack across digital payment channels.
13. Account takeovers are the source of 89% of digital fraud losses.
This type of fraud is rising, and businesses and banks are in the crosshairs. Fraudsters seize control of accounts daily; these takeovers account for 89% of digital fraud losses.
Bank accounts are protected with a unique username and password, but more is needed. Mobile banking security statistics show that these credentials are frequently stolen, with hackers’ methods becoming increasingly sophisticated. The parallel growth of the dark web marketplace where these details are sold is spreading fear among consumers worldwide.
Experts suggest that the customers of most popular banks in the USA use two-factor or multi-factor authentication to reduce the risk of an account takeover. Besides weak authentication systems, fraudsters can use fake websites, corrupt apps, or steal a phone. Consumers must be careful and make sure they create hurdles for cyber criminals trying to crack their bank accounts.
14. Mobile banking US statistics reveal that 16% of all digital fraud originates from Trojan horses or financial malware accounts.
Financial malware constantly evolves, and mobile banking trends show that Trojans remain the most dangerous and common threat. Fraudsters use fake websites and spam emails to steal users’ details. Unfortunately, these methods are still incredibly successful.
Online and mobile banking statistics show that fraud originating from malware accounts for 16% of attacks. Even though it’s showing some signs of decline, financial malware continues to evolve, with strategies like ransomware proving disturbingly successful. Fraudsters who fail to steal your credentials might instead encrypt them and demand a ransom.
15. In 34% of cases, fraud occurs on a confirmed account on the user’s device, indicating that physically stealing devices are a common way for hackers to penetrate victims’ defenses.
Unfortunately, no switch can be flicked to erase mobile fraud. Since a person’s device acts as their online identity, users must pay attention to their mobile security. Fraudsters keep abreast of the latest trends; a unique email address and password are not enough to stop them at the gates.
Mobile banking fraud statistics indicate that fingerprinting solutions could reduce at least a portion of the 34% of attacks from trusted accounts.
16. Phishing was behind 90% of data breaches that occurred in 2022.
By and large, phishing leads the pack regarding the number of cyberattacks on mobile banking apps. The main issue with these attacks is that they’re getting harder to stop as they become more sophisticated.
This remains the most common type of fraudulent attack. Indeed, RSA’s statistics on mobile banking show that phishing accounted for 60% of cyberattacks in Q4 of 2019. These attacks are performed through fraudulent email accounts or links directing users to a fraudulent website.
Now there’s a new risk: SMS phishing, also known as smishing. Consumers are invited to take a survey, complete a test, and win a $100 gift card. In many cases, people go after the prize.
Roughly 90% of data breaches happened as a result of phishing. Phishing attacks may increase by 400% year-over-year, according to the US Federal Bureau of Investigation. Statistics indicate that about 65% of cyber attackers have leveraged spear phishing emails as a primary attack vector, as 1 in 99 emails is a phishing attack.
17. Around one in every 20 fraud attacks occurs thanks to a rogue mobile app.
Cybercriminals are stepping up their game, and mobile devices are more at risk than ever. The average smartphone has 35 apps installed, each a potential entrance for a hacker.
RSA’s mobile banking statistics show that about one in every 20 fraud attacks is caused by a rogue mobile app. Fraudsters can upload a rogue app to one of the major app stores where they can count on unsuspecting users to download it. Unfortunately, it can be challenging to tell whether an app comes from a reputable vendor or if it’s a cleverly disguised piece of malware.
18. There were 2.8 billion malware attacks globally in the first half of 2022.
Fraudsters have the technology to follow the money and distribute malware that steals payment data, login credentials, and funds from victims’ bank accounts.
This type of malware has evolved; mobile banking statistics in 2019 showed a 50% increase in attacks compared with the first half of 2018.
The most widely distributed mobile bank malware is Triada, which accounts for nearly 30% of banking malware attacks. It grants super-user privileges to hackers and allows them to control users’ devices completely.
SonicWall Capture Labs threat researchers recorded 2.8 billion malware attacks worldwide, an 11% increase to date; this implies an average of 8,240 malware attempts per customer.
19. Crypto-jacking and IoT malware are the culprits behind the rise in malware.
According to the data collected by SonicWall Capture Labs’ threat researchers, they discovered that the main perpetrators behind the increase in malware attacks to date are crypto-jacking and IoT malware accounting for 30% and 77% of total malware attacks, respectively.
20. 75% of e-commerce businesses experienced an increase in fraud attempts in 2021.
Chargeback fraud happens when consumer purchases and then requests a chargeback from their credit card company. An approved chargeback immediately cancels the entire purchase and refunds the consumer’s money.
When fraudsters file a refund claim, they must convince the bank or the merchant to send money back to their mobile banking account. They usually list product problems or claim that the original transaction was unauthorized.
This way, issuers are forced to take cardholders at their word. Mobile banking statistics in the US say that so-called “friendly fraud” accounts for over 60% of fraudulent activities on mobile devices. The average cost of a single chargeback is expected to be $190 by 2023.
Unfortunately, no set of regulations could completely protect merchants and issuers from this common type of fraud.
21. Mobile fraud’s total cost worldwide, from e-commerce fraud to merchants, will exceed $48 billion in 2023.
Mobile banking app statistics show that 14,392 mobile data breaches reported to the US Federal Trade Commission in 2019 cost over $40 million.
The latest study from Juniper Research recorded a 16% growth in e-commerce fraud losses in just 12 months. They predict that the total cost of eCommerce fraud to merchants globally will exceed $48 billion in 2023, from just over $41 billion in 2022.
Steps You Can Take to Secure Your Account
It wasn’t long ago that banking was inconvenient and time-consuming. In 2022, people were used to banking on mobile devices, and most think their payments are secure. Mobile banking
usage statistics show that some users share their account information via text messages or
email, blindly entrusting these details to the network. You can keep your information safe by following these tips.
- Use a strong password – This is your first line of security. Avoid using details like your birthday or pet’s name, both of which are recipes for disaster. Choose an unusual mix of words and numbers, and change it occasionally.
- Add a multi-factor authentication feature: An unusual mix of words and numbers won’t cut it all the time; this defense system can be beaten. In addition to proper password hygiene, adding a multi-factor authentication feature will provide you with an additional layer of defense against persistent hackers.
- Bank using your cellular data or a home Wi-Fi connection – Mobile banking statistics highlight that public Wi-Fi is insecure and dangerous. If you are out and about and wish to check your bank balance, use your cellular data or wait until you reach a secure network. You never know who might be lurking over the public connection.