Consumers still trust banks over fintechs and digital banking

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Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO and has 20 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely quoted as an expert… Read more
  • Many consumers still use traditional banking to do their transactions
  • This is the trend for now, according to experts, but may change sooner than expected
  • Reliance on mobile devices to check balances and verify account activity is on the rise

Despite the availability of digital payment options, consumers still use traditional banking, according to research done by ING.

In ING’s International Mobile Banking Survey for 2018, the benefits of mobile and digital banking do not seem to be enough for banking clients as 76% of consumers in Luxembourg still use their main bank for most of their transactions. This number is followed by Belgium with 73%. Over 50% of consumers in Germany, the United States, the United Kingdom and Australia do not trust mobile banking either, based on the survey results.

As more consumers around the globe use fintech and international money transfer brands to settle payments to international sellers or send remittances to family back home, the publisher of the Digital Banking Report Jim Marous says that the trend is primarily only due to the global increase in smartphone owners. However, the survey also shows that a sizeable number of consumers in different regions have embraced financial technology because it makes it easier for them to manage their finances.

Mobile devices are still the first choice for consumers when it comes to checking money in their accounts or to verify activity, and numbers are on the rise. Experts say that this reliance on mobile banking will open doors for account holders to start utilising their apps for other digital transactions. In the US, an estimated 76% use their mobile banking apps to do daily balance checks while 65% do the same in all of Europe. In the UK, 73% use their mobile devices to check balances.

It is interesting to note that when buying items online, consumers use a range of payment options instead of sticking with traditional methods, according to ING. In the United States, 22% of consumers use PayPal while 32% of all of Europe use the online payment brand. The UK and Australia have higher PayPal usage at 33% and 49% respectively.

Transferring money to friends or family abroad can be so much easier than traditional banking. To learn more, take a look at this link here.


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