Digital only banks needs to reinvent itself in order to sustain, Survey says

Looks like digital only banks needs to reinvent itself in order to sustain its current standing in the global market.

This developed after a recent survey has shown that people around the world – from India to Canada to the UK are losing interest on digital-only banks.

Based on the survey conducted by RFi Group to 100 consumers in each of 10 different countries, they find out that the global appetite for digital-only providers fell from 74% in the first half of last year to 63% in the second half.

It was also discovered on the same survey that desires for digital-only main bank has also dropped, from 50% to 44%.

The RFi Group explained while digital usage in banking continues to grow, people are moving more towards the mobile and online channels of traditional players, rather than the app-only challengers.

On the same survey it was also discovered that in UK, where the likes of Monzo, Starling and Atom have sprouted up, willingness to bank with a digital-only provider fell from 78% in H1 2017 to 54% in H2.

In Canada  RFi said there is also a drop from 65% to 44%.

Charles Green, CEO, RFi Group, said the drop could also be due to the fact that traditional banks is more reliable when it comes to private data.

Green said across the industry, banks are the most trusted organizations when it comes to holding and maintaining privacy and security of personal  information globally.

On the RFi survey the trust on banks is increasing, from 31% globally in H1 to 42% in H2, while trust in technology companies has hardly increased and trust in new technology companies has declined.

The RFi added that 49% of consumers trust that their bank can ‘keep my money safe’, while the trust in technology companies is significantly lower, standing at 27%.

While the overall survey result is a bad news for digital-only banks, the same survey also shows that the proportion of consumers logging in at least once per week to digital banking has grown from 58% to 68% in 2017, while daily the daily usage is also on the rise, increasing from 24% to 34% of respondents.

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Peter Schmidt is a journalist focused on latest technologies in banking. Peter Schmidt is a senior writer and video host at TheOofy. He also hosts a podcast about tech finance. Previously, Schmidt was a finance reporter for Mashable and has been a contributor at APA, Fortune and Forbes. Schmidt has a Master's in Journalism from Heidelberg University.