Digital-only banks attract interest of US, UK consumers

Digital-only banks attract interest of US, UK consumers

More than 50% of US consumers wanting to change banks would consider a digital-only bank, according to a new survey that also reveals the same findings reflected in a similar UK survey.

According to the survey conducted by Juniper Research the findings showed that banks need to be more than technologically competent, with users’ top priorities including sign-up benefits and good rates, and which are often seen as more important than digital features.

According to Juniper Research, digital integrations are less important to consumers, with 26% of US switchers reporting integration with other services as important – while in the UK, where Open Banking integrations are available, only 13% of switchers consider this a reason to switch.

The survey also found that almost half of UK mobile banking users were unsure if they had used Open Banking services; pointing to an awareness gap that Juniper Resesarch says needs closing for Open Banking to be successful.

The survey found that COVID-19 has greatly increased contactless payments use, with 60% of US contactless users stating COVID-19 safety as a reason to use contactless payments.

And despite the head start OEM Pay had in the US, 89% of American contactless payments users now use contactless cards, and 35% of current non-users are expecting to start using cards in future.

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Source: iTWire – Digital-only banks attract interest of US, UK consumers