New research from Experian and Moneythor has revealed that 74% of Australians and New Zealanders consider their banking app a significant factor in deciding whether to stay or switch banking providers.

The findings, which have been published in a report titled 'Byte-Sized Banking: The App Experience 2024', were derived from a survey of 1,300 digital banking customers across Australia and New Zealand.

The report highlights that 86% of customers expect their bank to track their spending, while 60% of bank app users expect their bank to alert them to unusual transactions or potential fraud risks. Furthermore, 49% of users expect their bank to share insights to help them budget and manage their finances.

The frequency of app usage is also noteworthy, with 57% of Australians and New Zealanders using their banking apps between three and ten times a week. A significant 28% of users log in more than ten times a week to check budgets, review savings goals, transfer money, or track spending.

Millennials (25–34-year-olds) are the most active users of banking apps, with 65% using them more than six times a week. Moreover, 68% of this demographic is vocal about the need for additional tools and resources within the apps.

The report also reveals a divide between what banks in Australia offer compared to banks in New Zealand. Australian banks are stronger in providing spending insights, budgeting, and expense categorisation, while New Zealand banks score higher in financial education tips and subscription management.

Overall satisfaction for banking apps currently stands at 82%, with ease of use (81%), accuracy of transaction information (78%), and enriched transaction search (77%) cited as the main reasons behind this level of satisfaction.

Head of Innovation at Experian A/NZ, Jordan Harris, said: “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.” He further added, “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.”

Regional Sales Director A/NZ at Moneythor, Adam Gulden, said: “This research highlights the critical role that banking apps play in the decision-making process for consumers in Australia and New Zealand,” and added, “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.”