Americans have moved decisively toward mobile account access, but the evidence does not show a measured, nationwide exodus from traditional banks to neobanks. The clearest change is behavioral: mobile banking became the primary way many households reach an account, while online-only providers created additional relationships that can compete with branch-based banks.
That distinction matters. A phone replacing a branch visit is not the same as moving a primary account, and an account opening or app download is not proof of a lasting banking relationship. The strongest data describe channel use, bank-account access and consumer risks—not a single national “switching rate.”
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What changed in US banking
FDIC data provide the clearest measure of the channel shift. In 2023, 48.3% of banked US households used mobile banking as their primary method of accessing an account. The FDIC said that share was almost nine times higher than a decade earlier. Mobile access is therefore no longer a secondary convenience for many households; it is the main interface for everyday banking.
Most households still have an account at a bank or credit union, but access gaps remain substantial. The FDIC found that 4.2% of US households—5.6 million households—were unbanked in 2023. Another 14.2%, or 19.0 million households, were underbanked, meaning they had an account but also relied on nonbank financial services. These are household measures, not counts of people or app users.
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The Federal Reserve reports a different denominator and survey design. It found that 6% of adults were unbanked in its 2024 household report, published in 2025, and again 6% in the 2025 report updated May 26, 2026. Those percentages should not be compared directly with the FDIC’s 4.2% household figure. Together, the surveys show persistent access gaps, not a precise tally of people who moved to neobanks.
Neobank, digital bank and fintech: the terms are not interchangeable
“Neobank” is an industry description, not a legal charter. The Federal Reserve Bank of New York groups digital providers into several practical categories:
- Online divisions of traditional banks or credit unions: an established institution delivers services digitally, often alongside an existing branch network.
- Nontraditional online neobanks: a provider operates without physical locations and presents an app or website as the main customer interface.
- Fintech firms offering online banking services: a technology company may provide the customer experience while a separate, chartered bank holds deposits or supplies regulated banking functions.
The New York Fed uses Aspiration, Chime, Current, SoFi and Varo as examples across these broad categories. The examples are not equivalent: each can differ in charter status, partner-bank arrangements, products, eligibility rules and regulatory treatment. A brand name alone does not tell you which entity holds deposits, issues a card or handles a dispute.
Why the legal structure matters
A fintech can market checking, savings, payments or credit without itself being a chartered bank. In a partner-bank model, the fintech supplies the app, customer support and product design while an FDIC-insured bank holds eligible deposits and performs the banking activity covered by its charter. The account agreement and disclosures should identify that bank and explain which protections apply.
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That arrangement can be legitimate and useful, but it creates more than one organization for a customer to navigate. A frozen login, card problem or transaction dispute may begin with the app provider and require coordination with the partner bank. Before treating a provider as a primary account, identify the legal account holder, the bank partner, the complaint channel and the procedure for replacing a card or recovering access.
Did customers actually switch their primary bank?
The available evidence supports a quieter, narrower thesis than a mass migration. Mobile-primary use measures how people access an account; it does not identify which institution holds that account. Someone can use a traditional bank entirely through its app, maintain a neobank as a secondary account, or use both.
A CFPB survey summary reported that 6% of respondents named an online-only bank as their primary account. The same summary said 57% had banked with their financial institution for more than 10 years. Those figures describe a mixed market: some respondents use online-only institutions as primary accounts, while many maintain long-standing relationships. They are not a time series showing customers leaving traditional banks.
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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThe New York Fed notes that Bank On participation and neobank account-opening data are consistent with a general increase in account ownership and with falling unbanked and underbanked shares. It also cautions that relatively little is known about how long neobank accounts stay open, how often customers use them, or how they affect financial inclusion and financial well-being. Openings, downloads and transaction activity can therefore indicate availability and trial, but not necessarily durable primary-account migration.
Three meanings of “migration”
| What moved? | What the evidence can show | What it cannot establish |
|---|---|---|
| Access channel | Mobile became the primary access method for 48.3% of banked households in 2023, according to the FDIC. | That customers changed the institution holding their primary account. |
| Account relationship | Some respondents report an online-only bank as their primary account; online providers are part of the retail market. | A nationwide, sustained switching rate from traditional banks to neobanks. |
| Financial inclusion | FDIC and Federal Reserve surveys document unbanked and underbanked populations; the New York Fed sees account-opening trends consistent with broader ownership. | How long new accounts remain open or whether they improve financial well-being. |
How large is the remaining access gap?
The household and adult surveys answer different questions. The FDIC’s 2023 estimate covers households: 4.2% were unbanked and 14.2% underbanked. The Federal Reserve’s 2024 and 2025 reports use adults and found 6% unbanked in each report. A household can include several adults, and survey wording and timing differ, so the percentages should be read within their source rather than combined into one national rate.
“Underbanked” also does not mean “using a neobank.” An underbanked household has a bank or credit-union account but used a nonbank service for a financial need. That service might be a payment app, check-cashing outlet, money order provider or another alternative. A neobank may help some households obtain an account, but the category is broader than neobank adoption.
Why app-based providers can attract customers
Digital-first providers remove the need to travel to a branch and put account opening, notifications, transfers and card controls in one interface. That can be particularly relevant for people who live far from branches, work irregular hours or prefer real-time phone interactions. The same design can make a secondary account easy to test without closing an older account.
The business model is also different from a branch-centric bank’s. Chime Financial’s 2025 annual SEC filing describes products spanning spending, saving, liquidity and credit, delivered through direct relationships with FDIC-insured bank partners. The company reported 9.5 million active members as of December 31, 2025 and said most relied on Chime as their primary financial relationship. Those are company-reported metrics, not an independent estimate of US primary-account migration.
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Examples such as Chime, SoFi, Current, Varo and Aspiration should not be ranked from these facts. Their products, charter arrangements and customer definitions differ. If you compare providers, compare the structure and actual use case rather than assuming every app is a bank.
Consumer protection when banking moves into apps
Moving payments and account access into software changes the failure modes. The CFPB’s November 21, 2024 final-rule announcement focused on the largest nonbank companies offering digital funds-transfer and payment-wallet apps. It stated a threshold of more than 50 million transactions annually and estimated that the covered apps collectively processed over 13 billion consumer payment transactions each year.
The CFPB highlighted privacy and data-sharing practices, fraud and error handling, account freezes or closures, and outages or other disruptions. The rule announcement concerns certain large nonbank payment apps; it should not be generalized to every neobank, every banking app or every digital account. The legal status and scope of any rule can change, so consult current agency materials when a specific provider is involved.
“Digital payments have gone from novelty to necessity and our oversight must reflect this reality,” said CFPB Director Rohit Chopra in the announcement. The practical implication for a customer is to understand who is responsible when something goes wrong and how to reach a human or file a formal dispute.
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Risks to check before making an app your primary account
- Access failure: A locked phone, lost authentication method or app outage can block ordinary account access. Keep recovery information current and know the provider’s offline contact method.
- Fraud and error disputes: Save transaction alerts and statements. Learn the deadline and channel for reporting an unauthorized transfer or billing error.
- Freezes and closures: Providers may restrict an account during identity or fraud reviews. Maintain a backup payment method and enough funds elsewhere for rent, payroll or essential bills.
- Privacy and data sharing: Review what information the app collects, which partners receive it and how to revoke optional data access.
- Outages: A digital-only interface has no branch fallback. Keep a small emergency reserve in an accessible form and download statements when needed.
- Cash access: Confirm how deposits, withdrawals and cash handling work in your location before abandoning a branch-based account.
How to evaluate a neobank or online-only account
Use the following sequence for any provider you are considering as a primary or secondary relationship.
- Identify the institution behind the brand. Read the account agreement and disclosures for the chartered bank or credit union, and determine whether the provider is the bank, a technology company or a bank-partner program.
- Match the account to your routine. Check direct-deposit timing, bill-pay support, transfer limits, cash-in and cash-out options, card replacement and international-use policies using the provider’s current terms.
- Test support before moving money. Ask how to report fraud, challenge an error, appeal a freeze and obtain records. Record the case number and expected response time for any inquiry.
- Plan for failure. Keep a second payment method, an alternative account and recovery codes. Do not make a single app the only route to rent, payroll or emergency funds until it has proved reliable for your needs.
- Review privacy settings. Separate required identity and account data from optional marketing or third-party connections. Recheck permissions after major app updates.
- Measure actual use. After several months, review deposits, withdrawals, recurring payments and dispute history. An account that remains unused is not evidence of a successful primary relationship.
What the “quiet migration” means for retail banking
The competitive shift is real even without a proven mass switch. Traditional banks now compete not only on branches and product breadth but also on app reliability, instant notifications, digital onboarding and transparent problem resolution. Neobanks compete by making the mobile interface the product’s center of gravity and by assembling spending, saving, liquidity and credit features around payments.
Customers can respond by keeping a long-standing institution for stability while adding an app-based account for a specific purpose, or by consolidating with an online-only provider. The decision is less about a label than about resilience: who holds the funds, how quickly a problem is resolved, how cash is accessed and what happens when the app is unavailable.
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Public evidence does not yet establish how many Americans have permanently moved their primary accounts from traditional banks to neobanks. It does establish that mobile access has become mainstream, online-only accounts are part of the market, and millions of households remain unbanked or underbanked. The durable change is therefore a transformation in customer access and competitive choice, with the long-term switching pattern still unresolved.
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