CLEVELAND, Feb. 23, 2021 /PRNewswire/ -- The majority (85%)
of Americans say they will use digital tools to conduct some or all
financial transactions after the COVID-19 pandemic, according to
the KeyBank 2020 Financial Resiliency Survey. However,
Millennials and Gen Zers (those under age 35) prefer a combination
of digital and in-person banking more often than older Americans,
who would rather exclusively use digital banking tools—a surprising
discovery for technology-forward younger generations.
More than one quarter (28%) of people under age 35 say they want
to create and update a budget with the help of a professional
powered by technology. By contrast, just 6% of people 50 and over
said the same. Rather, 51% of people age 50 and over would prefer
to create and update a budget on their own using digital banking
tools, compared to 44% of people under age 35 who agree.
The 2020 Financial Resiliency Survey polled more than
1,200 Americans on their financial feelings after nearly a year of
living through a pandemic, finding that 44% of people are extremely
comfortable with digital banking tools, reflecting a massive shift
towards digital, as our lives become increasingly virtual during
the pandemic. Generational preferences in digital banking could be
a result of younger Millennials and Gen Zers experiencing financial
firsts—such as budgeting and bill pay—during a tumultuous year.
"The pandemic has accelerated the adoption of online and mobile
banking, and consumers are increasingly comfortable with using
digital tools to manage their money," said Jamie Warder, Executive Vice President and Head
of Digital Banking at KeyBank. "The advantage of digital banking
tools is that they are not one-size-fits-all solutions. With
widespread economic fallout resulting from the pandemic, it is
understandable that younger Americans are seeking guidance from
trusted financial advisors to help them navigate uncharted waters,
in addition to technology-enabled services that allow them to bank
on their own terms. The future of banking includes both digital
tools and human expertise."
Digital banking proved to be powerful for helping Americans
weather turbulent economic times—35% of Americans report that
digital banking tools make them feel more financially resilient
during the pandemic. Despite significant economic hardships faced
by many over the past year, Americans' are reporting overall
increased financial confidence and awareness, with 53% of
respondents saying they felt more financially confident approaching
the end of 2020, and 48% saying they felt more financially aware as
a result of challenges they faced during the pandemic.
The increased reliance on digital banking tools helped many
Americans maintain healthy financial habits to endure economic
uncertainty. As of June 2020,
KeyBank's Digitally Active clients signed on (to either desktop or
mobile) an average of 20.2 times per month. Respondents plan to
continue using digital tools to conduct the following transactions
going forward, compared to before the pandemic:
- Insurance enrollment (41% vs. 34%)
- Creating/updating a financial plan (40% vs. 33%)
- Creating/updating an estate plan (27% vs. 20%)
Methodology
This survey was conducted online by Schmidt Market Research.
1,204 respondents completed the survey between Sept. 30 and Oct. 2, 2020. Target
audience was between the ages of 18 and 70, and those who have sole
or shared responsibility for household financial decisions.
About KeyCorp
KeyCorp's (NYSE: KEY) roots trace back 190 years to Albany, New York. Headquartered in
Cleveland, Ohio, Key is one of the
nation's largest bank-based financial services companies, with
assets of approximately $170.3
billion at December 31, 2020.
Key provides deposit, lending, cash management, and investment
services to individuals and businesses in 15 states under the name
KeyBank National Association through a network of more than 1,000
branches and approximately 1,400 ATMs. Key also provides a broad
range of sophisticated corporate and investment banking products,
such as merger and acquisition advice, public and private debt and
equity, syndications and derivatives to middle market companies in
selected industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/.
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SOURCE KeyCorp