The banks need to increase their technological competence
Over half of US consumers consider shifting to neobanks. Source: pexels.com
Juniper Research has found that over 50% of US consumers wanting to change banks would consider a neobank, with the same finding reflected in a similar UK survey.
Although, the survey showed that banks need to be more than technologically competent. That’s because users’ top priorities include sign-up benefits and good rates, which are often more important than digital features.
The report also notes that there are marked differences between US and UK consumers around reasons to switch banks. The most common driver in the US is for sign-up benefits, but UK switchers prefer better overall rates.
Digital integrations are less important to consumers, with 26% of US switchers reporting integration with other services as important.
As to the UK, where Open Banking integrations are available, only 13% of switchers consider this a reason to switch.
According to data, nearly half of UK mobile banking users were unsure if they had used Open Banking services; pointing to an awareness gap that needs closing for Open Banking to be successful.
The survey found that the pandemic has significantly increased contactless payments use. This way, 60% of US contactless users stating COVID-19 safety as a reason to use contactless payments.
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 the future. However, the use of OEM Pay solutions remains strong, with 85% of US contactless users using at least one OEM Pay solution.
We’ve reported that the pandemic forced UK SMEs to be more reliant on digital services.
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