Cyber security holding back consumers from using digital-only banks

While banks invested $124 billion globally in new IT in 2021, digital-only banks are still proving less popular amongst the general population.

According to a recent study by Accenture, a third of British people still prefer to do banking in person.

The survey of over 2,400 UK adults found that even though 38% of the UK population have a digital-only bank account, only 12% use it as their main bank.

This may start fading slowly, however, as over half of the younger generation of 18 to 24-year-olds have a digital-only account in comparison to only a quarter of those over 55.

The most common reason for not using a digital-only bank was the desire to speak to staff and visit a branch, as almost one in five are still concerned about the data security and financial stability of digital-only banks.

According to the report, most generations agree that they like to see branches in their neighborhood as it confirms to them “the providers stability and availability”.

On top of that, the report found that branches contribute to growing loyalty and facilitating connections.

The report by Accenture claims that generative AI, such as ChatGPT, could help this issue by making “impersonal customer care conversations much more human-like and effective”.

Tom Merry, managing director, banking strategy at Accenture said: “On the one hand, it’s plain for all to see that customers continue to do more banking digitally and that they value great digital experiences via mobile apps and digital channels.”

“At the same time, there is still a significant part of the population who want human interactions. The big banks must balance a fantastic digital experience with human experiences when they matter.”