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More consumers turning to mobile deposits

October 10, 2022

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One of the big revolutions in mobile banking over the last few years was the one that granted consumers the ability to deposit a check simply by taking a picture of it with a smartphone or other mobile device. That technology caught on fairly quickly and is already used by a majority of banking customers. This may highlight to banks just how important the ability to innovate in the mobile banking sector and beyond will be important to fueling future industry growth, and could point to ways they may be able to streamline the in-person banking experience as well.

Today, the number of people who have used a mobile device to remotely deposit a check stands at about 1 in 7 Americans, according to a new survey from the American Bankers Association. That’s up from 1 in 8 last year. However, it seems that the number who have done so at least once, but then continue to do so with regularity, is on the rise.

What’s the trend?
Indeed, 54 percent of banking customers across the country who have used mobile deposit once do so at least once per month afterward, the report said. In all, 27 percent do so just once per month (a number that was actually down from 46 percent last year), and 12 percent do it twice a month (down from 23 percent annually). Further, 15 percent do so at least three times per month (up from 11 percent in 2014).

What about everyone else?
The breakdown of the remaining number is that 45 percent say they do so less than once per month (up from just 19 percent a year ago), and 1 percent just weren’t sure how often this happens (unchanged), the report said. However, it should be pointed out that check use is simply declining sharply nationwide, and may therefore account for the sharp drop-off in regular users.

“Mobile deposit continues to attract more consumers because this bank service is incredibly convenient,” said Nessa Feddis, ABA’s senior vice president and deputy chief counsel for consumer protection and payments. “In the short time it takes to post an Instagram, you’ve deposited your check. [However,] people are receiving checks less frequently, but when they do they’re increasingly turning to mobile banking to deposit them. Mobile has become a bigger part of how people interact with their bank, and we expect banks to continue to expand and enhance customer services available through mobile devices.”

The more banks can do to make banking easier for consumers, the more satisfied with their financial institutions they’re likely to be. In addition to innovating when it comes to the technology in people’s pockets, it’s likewise becoming more important for banks to evaluate the ways in which their branches operate to make sure it’s as convenient for consumers as possible. In many ways, the in-person experience – even if it’s only occasional – may be what ends up helping them stand out from their competitors.

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