74% view banking app crucial for provider loyalty – survey

Experian and Moneythor have released a new report, "Byte-Sized Banking: The App Experience 2024," which surveyed 1,300 digital banking customers across Australia and New Zealand. The report reveals that nearly three-quarters (74%) of respondents consider their banking app a significant factor in deciding whether to stay with or switch their banking providers.

The survey highlights high usage rates for banking apps, with more than half (57%) of Australians and New Zealanders using their banking apps between three and ten times a week. Additionally, over a quarter (28%) log in more than ten times a week to check budgets, review savings goals, transfer money, or track spending. Millennials emerge as the most active users, with 65% of 25 to 34-year-olds using banking apps more than six times a week. This demographic also shows a strong demand for additional tools and resources within these apps, with 68% expressing this need.

Overall satisfaction with banking apps stands at 82%. Key factors contributing to this satisfaction include ease of use (81%), accuracy of transaction information (78%), and digital features like transaction search (77%). However, despite these high satisfaction levels, the report notes differences between Australian and New Zealand banks, particularly in what features they offer through their apps.

Australian banks outperform their New Zealand counterparts in several areas. When it comes to spending insights, budgeting, and expense categorisation, Australian banks lead. For instance, 51% of Australian customers reported access to expense categories compared to 33% in New Zealand. Similarly, spending trend insights are available to 40% of Australian app users, compared to 24% in New Zealand. Additionally, 62% of Australian customers receive real-time notifications on transactions versus 50% in New Zealand. On the other hand, New Zealand banks score higher in financial education tips and subscription management, slightly edging out Australian banks in these categories.

Jordan Harris, Head of Innovation at Experian A/NZ, remarked on the findings, stating, "This research underscores the importance of banking apps for customers in Australia and New Zealand. As cost-of-living pressures intensify, the reliance on banking apps for effective budgeting and financial management has never been greater."

The demand for enhanced banking app features is evident. The research shows that 86% of customers expect their bank to track their spending. While 60% of users primarily seek alerts for unusual transactions or fraud risks, 49% expect additional insights from their banks to help them manage their finances more effectively.

Adam Gulden, Regional Sales Director A/NZ at Moneythor, highlighted the critical role these apps play in customer decision-making. "This research highlights the critical role that banking apps play in the decision-making process for consumers in Australia and New Zealand. As customers increasingly rely on digital banking to manage their finances, it's essential for banks to continuously innovate and enhance their app features. By providing tools that offer proactive financial support, such as spending insights and budgeting tools, banks can not only improve customer satisfaction but also foster deeper loyalty and trust in a competitive landscape."

The findings indicate that while current satisfaction levels with banking apps are high, there is a clear demand for more features and proactive tools. Banks that seize this opportunity can transform their apps into comprehensive financial hubs, offering personalised advice, enriched transaction data, and sophisticated financial management tools. This approach could significantly strengthen customer loyalty in an increasingly competitive market.