Millions of Americans enjoy the convenience offered by online banking. But one demographic group in the U.S. seems to have embraced this service more than others according to new research from Nielsen Claritas. Asian Americans are significantly more likely to bank online compare to non-Asian households, with 75.3 percent banking online compared to 67.4 percent of non-Asians.
But it is income rather than age or ethnicity that appears to be driving online banking usage: affluent households with incomes of $100,000 and up and with heads-of-households aged 35 or younger were just as likely to bank online whether they were Asian or not (84%). As affluence levels decrease, more Asians tend to bank online compared to non-Asian households.
With competition for new customers increasingly fierce, financial institutions would be well-served in targeting Asian families. The average Asian-American household has a mean income of $84,000 compared to $62,000 in non-Asian households. In addition, they tend to hold very high deposit levels with much of their assets in savings, money market, CDs or mutual funds accounts.
Snapshot of Asian American Households’ Banking Practices Compared to Non-Asians
|Reviews statements and balances||69.3%||63.6%|
|Transfers b/t accounts||49.4%||39.6%|
|Variable interest money market||37.4%||21.5%|
|Mutual fund (excluding IRA/401k)||29.9%||18.4%|
|Source: Nielsen Market Audit syndicated survey|