Modern customers expect faster, more diverse service options for digital banking. An omnichannel experience is now a must-have element for providing flexible services across multiple communication channels.
Technology and people’s expectations go hand in hand. It’s like Newton’s third law of motion, which states to every action there’s an equal and opposite reaction. To every technological action, there are equal and opposite reactions from people. Digital banking platforms stand at the forefront of this technological action, making it easier for banks to host various financial services.
People have reacted in a variety of ways. Explore these statistics below to see into the future of digital banking.
The statistics below show the increasing influx of digital banks in the modern market. They provide superior, more cost-effective services than their traditional counterparts.
Traditional banks usually require a visit to a physical branch to access your account. Conversely, online banks operate without physical locations and all interactions must occur digitally.
Online banks can provide benefits such as lower fees and higher rates of return due to reduced operational costs associated with physical infrastructure.
of consumers indicate their likelihood of switching to a digital-only bank.
Source: Business Wire
Let’s look at some competing statistics to unpack the facts about traditional and digital banking.
Traditional banking | Digital banking |
77% of consumers rely on traditional banks as their primary or secondary providers, while only 57% of consumer funds are kept in brick-and-mortar shops. | 35% of consumer funds kept in non-traditional accounts remain in digital-only banks and stand-alone digital accounts out of 43% of consumer funds. |
Among the 65% of consumers using traditional banks as their primary provider, only 66% express satisfaction. | User satisfaction increases to 79% and 81% for users of digital-only banks (21%) and stand-alone digital accounts (7%). |
Consumer inclination toward digital banking is causing significant changes in banking operations. Many have reduced their branch staff according to customer traffic. Some have even closed their branches. The access that digital banking services offer is just too appealing for busy customers.
The trends below tell the same story.
of consumers anticipate visiting branches less frequently. Nevertheless, 82% still consider having a nearby branch significant.
Source: EY
According to Businesswire, 35% of consumers prefer non-traditional financial services like digital-only banks and stand-alone digital accounts as primary service providers. The table below discusses consumers and their preference for digital-only banks according to age.
Age group | Percentage of consumers who prefer digital-only banks |
All age groups | 21% |
18-24 years | 24% |
25-35 years | 26% |
35-44 years | 29% |
45-54 years | 18% |
55-64 years | 8% |
Online banking refers to accessing various banking features and services through your bank's website from your computer. You can check balances, pay bills, and access additional features, like loan or credit card applications, through the banking portal. Read up on the key statistics in this area to discover where the industry is heading.
of users worldwide turn to online banking at least once a month, while 59% use mobile banking apps.
Source: Deloitte
Mobile banking is about using apps on mobile devices, like smartphones or tablets, to access many of the same banking features. The bank provides these apps where you have an account and typically use the same login credentials as your online banking portal.
The statistics below talk about the benefits of mobile banking, its competitive advantage, and its grand entrance onto the scene.
of Gen Xers and 79% of baby boomers recognize its advantages and the benefits it has for all generations.
Source: Insider Intelligence
Digital banking is prone to cyber threats. In 2023, the Reserve Bank of India (RBI) reported bank frauds amounting to over 302.5 billion Indian Rupees. With massive digital transactions, traditional fraud or scam monitoring services need to catch up to modern cybersecurity challenges banking institutions face.
of respondents indicated that their banks perform fraud risk assessments just once a year
Source: Deloitte
Online banking offers numerous advantages over most traditional banks. Customers get the ease of accessibility, personalized experiences, and, most importantly, flexibility.
Although security tactics need more work, digital banking platforms are on their way to bridging any gap between modern customers and the complex banking sector.
Learn more about the state of digital banking in 2023.Find the right digital banking platforms to digitize bank operations, facilitate digital customer interactions, and allow banks to offer a host of digital financial products.
Sagar Joshi is a former content marketing specialist at G2 in India. He is an engineer with a keen interest in data analytics and cybersecurity. He writes about topics related to them. You can find him reading books, learning a new language, or playing pool in his free time.
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