Consumers Get Comfortable Applying for Loans on Mobile Apps, Report Finds

As consumer trust in financial apps continues to rise more customers are comfortable using mobile banking apps for complex transactions such as loan and mortgage applications: one report finds.

A report released by Webpals found that out of 500 bank customers, 50 used their financial mobile apps to apply for a loan or mortgage. This number, albeit small compared to the growing mobile banking population, speaks to a trend of customers using their banking apps for more than just checking account balances or transferring money.

It is also worth noting that applying for a loan on mobile is still new for many banks. Wells Fargo and Bank of America, launched their mobile mortgage application feature last spring—less than a year ago.

JPMorgan Chase & Co., and Citigroup are other major banks that have digital mortgage platforms.

Also Read: Banks Wake Up to Digital Mortgages

Customers using banking apps for more complex financial transactions such as loans and mortgages indicates growing consumer trust in mobile banking. The survey found that 72% of respondents said they trust syncing their personal finances to their mobile phones. Only a small number expressed distrust in mobile banking, with baby boomers making up the largest part of this group. The survey found that 23.3% of baby boomers don’t trust mobile banking, compared to 9.7% of Gen Z.

Not surprisingly, the survey found that over 60% of consumers use financial apps for everyday banking such as checking account balances, tracking expenses, paying bills and transferring money. The survey found that about 26% of respondents are mainly banking digitally, with millennials and Gen Z audience making up the bulk of that number.

Inbal Lavi, CEO of Webpals Group, said in a statement yesterday:

This survey highlights just how trusting consumers have become with their mobile applications. Today’s banking customers want the ease of financial apps but the same trust and respect they have been accustomed to for years with traditional banking. While potential customers are often familiar with brick and mortar branches, we can expect to see a steady increase in the rise of mobile finance consumers.

Read the full report here.

WebPals conducted the survey on Google Consumer Survey during the month of September 2018. Over 500 bank customers across the U.S. were surveyed for the report.

Based in Tel Aviv, Israel—Webpals Mobile is a mobile app user acquisition company that works with FIs to create targeted marketing campaigns.

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