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Digital only banks still 'not trusted' in South West despite saving opportunities

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Written by: Hannah Baker | Posted 09 April 2018 16:17

Digital only banks still 'not trusted' in South West despite saving opportunities

Nearly a quarter of people in the South West (23 per cent) would not choose to bank with a digital-only bank and 44 per cent would not trust them with their financial data.

That’s according to a new study by price comparison site MoneySuperMarket, which found that although 63 per cent of people in the region are aware of the names of digital banks, traditional high street banks are still more popular.

A digital-only bank is one that predominantly focuses on the mobile app experience and has no physical branches.

However, over half of Britons consider a bank’s digital services to be a major factor when opening an account - rising to 71 per cent of those aged between 25 and 34.

Read more: Number of new tech companies being launched in South West rises

This trend hasn’t gone unnoticed by the high street banks as they rally to upgrade their digital offerings with new designs and a selection of their competitors’ features.

With two-thirds of Brits signed up with more than one bank for their financial services and one in five using as many as three banks, the data suggests that people are now used to the idea of shopping around for their money needs, but many households could be missing out on possible savings offered by challenger banks.

Brits may not be ready for digital-only banks as they still prefer to visit their branch rather than use an app for the majority of common banking services, in addition to concerns about sharing data.

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