Financial Tech is a large and rapidly growing industry across the world. According to 2019 FinTech trends, North America is no longer the main contributor of FinTech growth, but the industry remains a large component of most peoples’ lives.
Students, in particular, are heavily reliant on these technologies, especially on online banking options. Here are some reasons why we are seeing more students turn to digital banking over making the trip to their local branch.
Location, Location, Location…Doesn’t Matter
Students are constantly on the move, whether for travel, school, or work. The job market is less predictable and reliable than it once was, so getting a job in the town you grew up in or the city you go to school in is not as likely as it may have once been.
Online banking makes the actual location of a person’s banking branch almost irrelevant. Students can move around and still be able to attend to their finances without having to travel back to the bank they first registered with and without having to go through the headache of registering with a new bank.
Everyone is Using it
Students aren’t the only ones using online banking; the schools and businesses they interact within their daily lives are using it as well:
- Academic Institutions: Schools require many deposits from students at many different times, which they keep track of through students’ online accounts. Many schools require that students set up online banking and add the school as a payee for more simple and organized payments.
- Employers: Nowadays, direct transfer is often the only way that employers will pay students for their work, and the only way to see these payments is through online banking.
- Online Shopping: Online shopping trends are in a constant upward swing with no sign of slowing down, and the only way to buy through online stores is with online banking. Purchases within apps are also done through online banking, while many banking apps allow for app integration so information is shared and tracked for the user’s convenience.
It’s no wonder students who live their financial lives with these institutions online also want to bank online.
There are many pros to online banking, often including free checking accounts, which are not always offered at brick-and-mortar locations. For students who are already up to their heads in student debt, this is an enticing option.
It is probably no surprise that younger generations prefer to do their banking on their phones rather than in person, or even online. Mobile banking is the largest growing banking trend among all age groups, but particularly among 18-29 year-olds. In a world that loves instant gratification, it is no surprise that an app would be students’ favourite method of banking—a few simple taps and bills can be paid, money transferred, and accounts checked.
Many online banks allow people to pay or take money out of their account simply by using their phone. For a generation with their phones constantly one them, this is a useful option.