Digital-only banks are losing their appeal as people around the world - from India to Canada to the UK - place their faith in traditional lenders, according to data from RFi Group.
The mobile banking revolution has seen a host of new entrants in places like the UK emerge, to great fanfare, hoping to take on high street veterans. This week app-only newcomers Starling Bank and Monzo took the top spots in Smart Money People's 'Best British Bank' awards.
But, while digital usage in banking continues to grow, people are moving more towards the mobile and online channels of traditional players, rather than the app-only challengers.
RFi Group questioned more than 1000 consumers in each of 10 different countries, finding that global appetite for digital-only providers fell from 74% in the first half of last year to 63% in the second half. Appetite for a digital-only main bank has also dropped, from 50% to 44%.
In the UK, where the likes of Monzo, Starling and Atom have sprouted up, willingness to bank with a digital-only provider fell from 78% in H1 2017 to 54% in H2. In Canada, RFi found a drop from 65% to 44%.
Charles Green, CEO, RFi Group, says: "According to the research, digital is a pull factor as opposed to a push factor for consumers when it comes to banking, with a positive customer experience driving increased engagement, yet a bad experience not in fact driving customers away."
Another advantage that traditional banks have is their perceived reliability when it comes to private data. Banks are the most trusted organisations - across industry - when it comes to holding and maintaining privacy and security of personal information globally.
And, this trust is increasing, from 31% globally in H1 to 42% in H2, while trust in technology companies has hardly increased and trust in new technology companies has declined. 49% of consumers trust that their bank can ‘keep my money safe’, while the trust in technology companies is significantly lower, standing at 27%.
The proportion of consumers logging in at least once per week to digital banking has grown from 58% to 68% in 2017, while daily the daily usage is also on the rise, increasing from 24% to 34% of respondents.