Making Science

Consumers are opting for the digital offerings of traditional banks over app-only ones

Tyrone Stewart

MonzoPeople appear to be turning away from app-only banks, instead choosing to move toward the mobile and digital channels that are offered by traditional banking institutions.

According to a report from RFi Group, a financial services intelligence provider, global appetite for digital-only providers fell from 74 per cent in the first half of 2017 to 63 per cent in the second. This is despite digital banking usage increasing from 58 per cent to 68 per cent in the same period.

In the UK, an even more significant decline was seen, with only 54 per cent saying they were ‘comfortable with digital-only providers’ in H2 2017, compared to 78 per cent for the six months prior.

“The findings suggest that traditional banks which continue to ‘up their game’ in engaging consumers digitally will likely be the ones to benefit in the near future,” said Charles Green, CEO of RFi Group. “Consumers are becoming more sophisticated when it comes to digital banking, their needs will continue to change and while this happens we are seeing them lean towards a model that provides channel choice which includes both the traditional, and more recent offerings.”

RFi’s research suggests that trust is the main factor behind consumers’ decisions surrounding digital banking. The trust in banks for keeping personal information secure and private grew from 31 per cent in H1 to 42 per cent in H2 globally, while 49 per cent of consumers trust banks to keep their money safe compared to 27 per cent for technology companies.