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Debit ‘Essential’ to Young Adults

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by Young
October 21, 2015

Young adults, age 17 to 20, by a large margin, consider debit cards and mobile banking apps “essential,” according to a recent survey by TD Bank, Cherry Hill, N.J.

The results suggest that both debit cards and mobile banking apps will grow even more important as young Americans grow older.

According to the 2015 TD Bank Checking Experience Index, mobile and debit are vital to the upper end of generation Z Americans (ages 17 to 20), with nearly three quarters (74 percent) reporting their debit card as “essential,” compared to 56 percent of overall Americans. In addition, 41 percent of gen Z respondents consider their bank’s mobile app as “essential,” compared to 22 percent of overall Americans.

The bank surveyed approximately 1,500 Americans for the third annual TD Bank Checking Experience Index, which evaluates consumer behavior and attitudes involving their banks, banking products and checking accounts. Consistent with 2014 results, this year’s survey found that 86 percent of Americans feel positive about their banking relationships, rating their checking accounts as “excellent” or “very good.”

“It’s encouraging to see that most Americans are still satisfied with their banks and their checking accounts,” said Ryan Bailey, head of deposit products and non-real estate lending at TD Bank. “Our findings about gen Z validate the increasing significance of mobile, and suggest that traditional financial services, like debit cards, will remain valuable to consumers and a priority for banks.”

Other key findings:

  • Thirty-nine percent of gen Z respondents ranked mobile banking as a top day-to-day banking service or feature, compared to only 17 percent of overall Americans and 32 percent of millennials.
  • Ninety-three percent of gen Z respondents rated their banks’ debit offerings as either “excellent” or “very good,” compared to just 84 percent of overall Americans and 88 percent of millennials.

Overall, the survey suggests that Americans are still satisfied with their banks:

  • Eighty-three percent of Americans surveyed said they are either “extremely” or “very” satisfied with their primary checking account—in line with 2014 survey results.
  • Eighty-six percent of Americans ranked their bank as “excellent” or “very good” when it comes to offering friendly and helpful service—up three percent from 2014.
  • Seventy-five percent of Americans ranked their bank’s hours as “excellent” or “very good”—up three percent from 2014.

 

The survey was fielded by Vision Critical September 10–16, 2015. The total sample includes 1,474 respondents with checking accounts, featuring a margin of error of +/- 2.6 percent. Data has been weighted by age, gender and region to reflect the population.

 

Read more results from the survey at:  https://mediaroom.tdbank.com/ceiresults2015