The majority of Brits are willing to try a ‘digital only’ bank, but only 10 per cent are ready to switch.
It found that roughly two in five of respondents do not trust digital first or ‘challenger banks’ to share their financial data with other providers under the new Open Banking rules.
But recognition of challenger banks is growing. More than 60 per cent of Brits were familiar with at least one challenger bank. Atom bank was the most familiar to participants with at 19 per cent having heard of the app-only bank. Monzo came in second with 10 per cent recognition and Loot in third with 8 per cent.
Two-thirds of Brits are signed up with more than one bank for their financial products already, and roughly half of Brits surveyed suggested that they’d be likely to deposit their savings into a challenger bank, while maintaining a high street account.
“We’re already seeing traditional banks such as HSBC1 and RBS2 stand up and take notice, attempting to replicate some of the successes of the digital-only banks with improved apps and new platforms to enable innovation. As this increases choice and competition, it can only be a good thing for consumers.”” said Sally Francis-Miles, money expert at MoneySuperMarket.
“In the digital age, the emphasis is on user experience, which is something these digital only banks are specialists in,” added Dr. Markos Zachariadis, Associate Professor of Information Systems & Management at Warwick Business School.
“Their ability to scale up their offerings at a much quicker pace than traditional banks, integrating external services and upping platforms in a modular style, means that they’re able to stay one step ahead.
“For Brits, it’s really a question of personal preference: stick with the more product-orientated high street banks or enjoy the flexibility and innovation of the digital only banks.”