Why average won’t cut it much longer in digital banking
Can banks and credit unions improve mobile and online features enough to impress their customers or will they lose many of them to digital-only providers? New data show it could go either way and that security will likely be the deciding factor.
The major turning point when digital banking transactions outstripped branch-based transactions has already passed. A much bigger milestone will be the point at which more consumers use digital-only providers as their primary financial institution than use traditional banks and credit unions. That day may be closer than many think. Impossible? New data show that only a couple of hurdles may stand in the way.
A survey of U.S. consumers by Marqeta, a digital card issuer, found that just 14% of Americans use a digital bank exclusively. A fairly modest number, considering the marketing and operational prowess of Ally Bank, Discover Bank and other online-only institutions. However, the survey also found that nearly half (43%) of Americans use a digital banking service alongside their primary bank, and that, of those, just over half (53%) prefer the service of the digital bank.
On top of that, 30% of American consumers have considered changing banks in the past year, according to Marqeta, and three quarters of them say they would consider a digital-only bank if they were to make a change.
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