Published by Jessica Weisman-Pitts
Posted on November 18, 2021
6 min readLast updated: January 28, 2026
Mastercard research shows a rise in banking app usage among younger generations during the pandemic, highlighting a digital shift in financial habits.
· Mastercard research finds younger generations now as likely to have a banking app on their phone as a social media app, with 25-34 year olds checking it most often.
· This shift coincides with a general trend towards more digital banking during the pandemic with one in four people in the UK reporting they’ve used a new payments technology they wouldn’t have used before.
· Yet the older generations are still far less likely to use digital banking due to concerns about security – risking a digital divide.
· To ensure no one is left behind in the digital economy, a new Mastercard policy report Building Better Lives, calls for Government action to tackle growing digital and financial exclusion, including the adoption of existing digital innovations solutions to improve digital skills and financial inclusion.
London, UK, 17th November 2021 – New Mastercard research finds Gen Z and millennials are now as likely to have a banking app as a social media app on their phones (80% vs 76% for Gen Z; 75% vs 73% for millennials), highlighting a shift in mindset during the pandemic when younger people have seen their finances hit particularly hard.
This focus on personal finance is not just limited to the youngest adults though. Across all generations, there has been an increase in popularity of banking apps with one in ten (9%) who currently use them only doing so since the pandemic. Overall mobile banking apps are the second most owned in the UK, just behind social media apps (63% vs 66%). This is far more than those who have a streaming app such as Netflix (54%), e-commerce app such as Amazon (46%) or a news app (34%).
With the economic challenges of the pandemic, it’s unsurprising nearly half of people who use banking apps (47%) are now checking it daily, if not several times a day. Those checking most often are 25-34 year olds with 61% checking at least once a day.
This usage may also be in part due to an increasing confidence in digital forms of banking. Since the pandemic, there has been a decline in cash use and an increase across all digital payment methods. Of those who used digital payment technologies in the last year, 65% are using smartphone payments more, while 64% are using QR code payments more and 59% are using contactless more. In fact, one in four (25%) say they’ve used new digital payment technologies they wouldn’t have used before the pandemic.
However, there are still individuals who aren’t as comfortable with digital payments and digital banking. 30% don’t feel comfortable using digital payments, with 39% saying they are worried about the security of them. This is a particular concern among older generations with those aged 55-64 significantly more likely than 18-24 year olds to say fear of fraud prevents them from using digital payment methods (37% vs 26% respectively). Similarly, older people are still far less likely to have a banking app than younger people – just 42% of over 65s and 57% of 55-64 year olds have a banking app. This means there is a risk certain people and generations will be left behind as the UK transitions to a more digital economy.
A new report from Mastercard, Building Better Lives, written in partnership with civil society, consumer and business representatives, calls for action to be taken to improve digital and financial inclusion to ensure everyone can benefit from these new technologies. Recommendations of the report include the Government setting up a Coalition for Financial and Digital Inclusion to develop a cross-cutting strategy and working with regulators (such as the Financial Conduct Authority and Ofcom) as well as other government bodies, such as the Money and Pensions Service, to build public trust and confidence in digital financial services.
It also calls on the Government to encourage the uptake of fintech and Open Banking solutions, and support the move to Open Finance, to widen access for those who have been underserved or excluded by more traditional financial services. These solutions are already helping individuals and businesses understand and manage their money better, for example by allowing those with thin credit files to use their bank transaction data to prove their creditworthiness and increase access to affordable credit. The report asks the Government to lead by example, by adopting some of the digital payments technology that already exists within public services – improving how services are delivered, and how citizens interact with Government.
Kelly Devine, Divisional President, Mastercard, said: “The COVID-19 pandemic has hit people’s finances hard in the UK, with the youngest in society particularly impacted. As a result, we’ve found people are increasingly focused on keeping track of their finances on the go and the marked acceleration in the use of online and digital banking services, across all generations, is enabling this.
“Adoption of digital banking has really picked up amidst the pandemic however there are still many in society who are not fully comfortable with it. To ensure no one is left behind in the digital economy, more must be done to build digital skills and trust in digital financial services. The Government can lead by example in adopting Open Banking and fintech solutions within public services. Bolstering the financial and digital resilience of those most severely impacted by the pandemic must be the cornerstone of the Government’s recovery strategy.”
Helen Child, Founder of Open Banking Excellence (OBE), comments: “During the pandemic, Open Banking Excellence (OBE) gave a rallying call to their pioneers to share data that fed into a HM Gov Crisis dashboard. The response was over whelming. Truly humbling. We now see the important part that Open Banking has to play in supporting the post pandemic economic recovery. At Open Banking Excellence (OBE) we will be shining a light on this conversation as we believe it’s instrumental in creating a fairer and more inclusive society.”
Dr. Emma Stone, Director of Evidence and Engagement, Good Things Foundation, comments: “Fixing the digital divide is more important than ever – for young and old, for levelling up, for building better lives. These findings demonstrate the need to ensure every community has a place where people – young and old alike – can get the support they need to build their digital skills, confidence, and trust in using online services for their money and across their lives.”
To support digitally and financially excluded people who have particularly struggled during the pandemic, Mastercard is working with Lloyds Banking Group, Good Things Foundation and Clean Slate Training & Employment CIC on the Nobody in the Dark programme. The programme is offering personalised, face-to-face support to digitally and financially excluded people from 20 centres across the UK in locations such as Liverpool, Manchester, Birmingham, and Swansea. It’s targeting people living in poverty or on low incomes, who have limited digital skills and need support to use digital financial tools. This includes people facing greater risks of digital and financial barriers, including disabled people and people from communities experiencing racial inequalities.
You can read the Better Lives report in full here.
The article discusses the rise in digital banking app usage during the pandemic, particularly among younger generations.
Older generations have concerns about security and fear of fraud, making them less likely to adopt digital banking.
The report calls for government action to improve digital and financial inclusion, ensuring everyone benefits from digital banking.
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