A new report from Experian, the global data and tech firm, and Moneythor, the software company, called ‘Byte-Sized Banking: The App Experience 2024’ has revealed the importance of banking apps and how they are used by Australians and New Zealanders.
The report surveyed 1,300 digital banking customers across the Australia and New Zealand region. The report revealed how more than half (57 per cent) of Australians and New Zealanders use their banking apps between three and 10 times a week. In fact, over a quarter (28 per cent) log in more than 10 times to check budgets, review savings goals, transfer money, or track spending.
Interestingly, when it comes to selecting a banking provider, 74 per cent of respondents stated that the presence of a banking app plays a vital role in their decision.
Millennials are the most active users of banking apps, with 65 per cent of 25–34-year-olds using them more than six times a week. This demographic (68 per cent) is also the most vocal about the need for additional tools and resources within the apps.
Overall satisfaction for banking apps currently stands at 82 per cent, with the main reasons behind this level of satisfaction being:
ease of use (81 per cent)
accuracy of transaction information (78 per cent)
digital features such as transaction search (77 per cent)
So close but offerings are far apart
Despite this shared satisfaction between customers in Australia and New Zealand, the report highlighted a clear divide across the Tasman between what banks in Australia offer compared to banks in New Zealand. When it comes to spending insights, budgeting and expense categorisation, Australian banks are stronger than New Zealand. However, New Zealand banks score higher in financial education tips and subscription management.
Expense categories: Australia 51 per cent vs New Zealand 33 per cent
Spending trend insights: Australia 40 per cent vs New Zealand 24 per cent
Budgeting tools: Australia 46 per cent vs New Zealand 42 per cent
Real time notifications on transactions: Australia 62 per cent vs New Zealand 50 per cent
Financial Education tips: Australia 33 per cent vs New Zealand 38 per cent
Subscription management: Australia 35 per cent vs New Zealand 36 per cent
Customers also expect their banking apps to provide proactive financial support. The report found that 86 per cent of customers expect their bank to track their spending. While the majority of bank app users (60 per cent) expect their bank only to alert them when there’s an unusual transaction or fraud risk, there’s also the expectation that a bank will go further to share insights to help them budget and manage their finances (49 per cent).
Responding to evolving demands
Jordan Harris, head of innovation at Experian A/NZ
“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,” said Jordan Harris, head of innovation at Experian A/NZ.
He continued: “While current satisfaction levels with banking apps are high, there is a clear demand for enhanced features and proactive tools. Banks can seize the opportunity to transform their apps into comprehensive financial hubs that offer personalised advice, enriched transaction data and sophisticated financial management tools. By doing so, they can not only meet the rising expectations of their customers but also strengthen customer loyalty in an increasingly competitive market.”
Adam Gulden, regional sales director A/NZ at Moneythor
“This research highlights the critical role that banking apps play in the decision-making process for consumers in Australia and New Zealand,” said Adam Gulden, regional sales director A/NZ at Moneythor. “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.”
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