Savvy takes a look at the banking habits of Australians and what they’re using to conduct day to day transactions.
- Only 45% of 18-24s use online banking, compared to 83% of 55-64s.
- 78% of 25-34s use banking apps monthly, compared to 35% aged 65 and over.
- 67% of 18-24s use Apple Pay, compared to 10% of 55-64s and only 3% aged 65 and over
- Savings accounts more popular among women (83%) than men (77%)
A new survey commissioned by Savvy shows that 70% of Australians are using online banking on a monthly basis, compared to 61% using banking apps.
More telling was the breakdown of preferred digital banking method by age group; with online banking least popular among 18–24 year-olds (45%), and most popular with 55-64 year-olds (83%). By contrast, monthly banking app use was highest with younger age groups and lowest with older Australians: 78% for those aged 25-34, 76% for 18-24s, but only 50% for 55-64s and 35% for 65 and overs.
Bank accounts and credit cards
When it came to bank accounts and other features, the representative demographic sample of Australian adults (n=1,002) showed that 84% of us use an everyday account, 80% also have a savings account, and 69% of us use a debit card. Savings accounts were generally popular among all age groups, particularly the younger demographics (90% for 18-24s, 89% for 25-30s). This decreased in popularity as age increased.
Mortgage offset accounts were most popular with the 45-54 and 55-64 demographic. (22% overall.)
53% of Australians use a credit card, with a 58% of women and 48% of men reporting they hold an active credit card. Interestingly, credit card usage varied greatly between age groups, with only 16% of 18-24s answering that they had a credit card, compared with 34% of 25-34s, 56% of 35-44s, 67% of 45-54s and 70% of 55-64 year-olds.
As for the monthly habits of Australians, over half (51%) of Australians transfer money using the traditional BSB and Account Number, despite the introduction of PayID (also known as Osko) which offers instant payments using a phone number, email address, or ABN/ACN. Only 9% self-reported using PayID to make transactions.
Cardless Payment Most Popular with Gen Z
32% of Australians use some kind of cardless electronic payment system such as Apple Pay (22%) or Google Pay/Android digital wallet (10%). Interestingly, Apple Pay is significantly more popular with women (28%) than men (16%), and most popular by far with 18-24 year-olds, at 67%.
Beemit, a bill splitting request system, was almost unheard of in Australia with only 1% saying they’ve used it within the last month.
The traditional plastic credit card or debit card was far and away the most popular, with three-quarters of Australians using it within the last month (76%).
BPAY, the online billing system, also remained relatively popular on 38%.
Only 1% of those surveyed said they used none of these methods – presumably using cash instead.
Generational divide – expert
Personal finance expert and Savvy CEO Bill Tsouvalas says that while all age groups have taken to online banking, mobile and app banking is most popular amongst the young.
– Consumer Banking Survey (n=1002), September 2022.