Digital-only banks leading the way, research shows

Research commissioned by data management vendor Relay 42 has shown that digital-only banks are becoming increasingly popular with Brits, with 27 per cent having already moved to a mobile-only bank and 26 per cent considering doing so.

The study surveyed over 2,000 Brits and identified the main reasons for respondents choosing to switch to digital-only banks, with more than half citing a better online experience and functionality.

Attractive

Attractive finance rates and fees were also found to be one of the main drivers for Brits choosing to switch to a digital-only bank, with this reason being cited by 29 per cent, whilst 28 per cent believe that digital-only banks offer a better-quality service.

Just 13 per cent of Brits surveyed said that they were not interested in exploring new technologies to help them manage their finances.

The research comes after a separate study from P.A.ID Strategies showed that challenger banks are increasing in popularity, with Starling Bank being rated the top bank based on criteria such as identity verification, digital registration and account activation process. Monzo Bank came second in the rankings, whilst RBS and Barclays were rated the best traditional banks.

Challenger banks were given a score of 9.2 out of 15 in the P.A.ID Strategies research, compared to 7 out of 15 for high street banks.

Precipice

Commenting on the research, Relay 42 Industry Head, Finance Julius Abensur said: “Customers are on the precipice of embracing future technology and new products, which means their existing banks need to keep pace with demands and innovation to ensure customer loyalty and competitiveness.”