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COVID-19 Totally Changed How We Spend Our Money

Dawn Allcot
·3 min read
Chase bank logo
Chase bank logo

For many people, the pandemic changed how we shop, where we work and what we’re spending money on. But it’s also changing the way we spend our money.

The Chase 2020 Digital Banking Attitudes Study emphasized the move toward digital banking, peer-to-peer payments and online fraud alerts. The study also showed a tremendous — and relatively sudden — shift in our interactions with paper money.

“Consumers banked digitally more frequently during the pandemic than ever before, and that trend will continue into 2021 and beyond,” said Allison Beer, head of digital at Chase. “Consumers across all age groups trust that they can bank safely from anywhere, making it easier and safer for them to manage their money.”

To track digital banking trends, Chase polled 1,500 people ages 18 to 65, with half being Chase customers and the other half non-Chase customers.

See: How To Save Money During COVID-19
Explore: All the Things Banks Are Doing To Help Their Customers During the Coronavirus

The survey, with key findings conveyed in an infographic released by Chase today, revealed that 80% of the bank’s customers prefer to manage their finances digitally rather than in person, and half of all customers call the bank’s mobile app a “must-have.”

Customers use the app most for fraud alerts and electronic bill pay but also rely on it to check account balances and deposit checks. People do still use checks — and cash, for that matter — although more consumers have embraced contactless payment methods since the pandemic.

“Interestingly, our research found that 13% of surveyed customers cited avoidance of paper money and physical cards as one of their top three reasons for using digital payment tools during the pandemic,” Beer said.

See: Online Bill Pay — What It Is and How To Use It to Your Advantage
Explore: As We Move to a Cashless Society, These Are the Risks You Need To Know About

Thirty percent of those surveyed said they signed up for a peer-to-peer payment platform within the last six months, which coincides with the heart of the pandemic. Forty-five percent of early adopters say they’re using the apps more frequently now.