Survey: Challenger banks – a soon-to-be fixture on the digital landscape?

Almost 70% of bank customers would try another provider for a more attractive mobile banking service. This was the result of an online survey commissioned by market research institute CENSUSWIDE. The survey also found that only around 30% are completely satisfied with their current app.

CREALOGIX commissioned CENSUSWIDE to survey 1,500 consumers in Switzerland and Germany to find out how the Challenger banks’ offerings affect the requirements of bank customers. The result: a completely satisfactory mobile banking system is vital to them. Almost 69% of those surveyed would open a new account in order to be able to check their overall financial situation across all accounts at a glance on their smartphone, and take care of their daily banking at any time of the day or night. Consumers,  many of whom are connected 24/7 to their smartphone, are particularly open: More than three-quarters (76.7%) of 25- to 34-year-olds would enter into a new bank account. The proportion of 35- to 44-year-olds is almost identical. Of the 16-24 year olds, just under 70% would be tempted, and even among the 55+ age range, more than half are interested in better mobile banking.

An account with a mobile-only bank? Why not?

Only 31.4% of all respondents are completely satisfied with their current banking app. Almost 37% of all respondents are even considering opening an account with a mobile-only bank within the next 12 months. The new players are known for their self-confident approach to banking. “Tired of analog banking? Go digital with Monzo”, they say. Or: “Are you always waiting for everyone to catch up with your fast pace? You won’t have to slow down for Revolut, the only financial partner that can keep up with today’s world.” Or from Germany: “Why settle for a copy? Use N26, Europe’s first entirely mobile bank.”

In the case of the German flagship N26, however, such an aggressive course aimed at rapid innovation recently caused collateral damage. Because this damage affected both security and support, customers were very unnerved by what happened. Such occurrences play into the hands of more established banking institutions: they can position themselves as reliable partners in financial matters, with an open ear for the concerns of their customers and the benefit of thoroughly tested, secure processes. This may allow consumers to tolerate the one or other lack of convenience in mobile banking for a while. In the medium term, however, they expect a banking app that offers the same convenience as online shopping or booking services via a platform. The results of our survey leave no doubt about this.

The study “Convenience first: How Challenger banks make people want mobile banking” by CREALOGIX will be published in mid-May. You can register here free of charge to receive the study by e-mail as soon as it is available.

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