There is a growing number of Brits who are ditching high-street branches in favour of apps for their banking. Despite this, many of those that have opened digital-only bank accounts appear to not currently be using them as their primary accounts, according to new research we have carried out.
Almost half (47%) of Brits are keeping £1,000 or less in their digital-only bank accounts with 3 in 10 (30%) holding less than £100 in their accounts. Across all accounts, the average amount held is £3,214.
However, this trend may be changing, with 63% of Brits saying they plan to use digital banks as their primary bank account in the future and 12% saying they’ve left behind traditions and taken their banking fully online. Nevertheless, 38% of Brits say they will continue to use their traditional bank as their primary account, using their digital-only bank accounts for things like tracking spending and travel money, but not having things like their wages paid in to them or direct debits taken out.
Our research found that on average, men are keeping £3,649 in their digital-only accounts, which is higher than the £2,718 that women say they would hold in their digital-only bank account.
Gender differences in having a digital bank as main account
In terms of how people use digital banks, 64% of men said they were planning to have a digital-only bank as their primary bank account. In comparison, 60% of women said they planned to have digital banks as their main account.
Wales appears to be the most committed region in the UK to digital-only banking, where 83% of residents that have digital-only bank accounts say they plan to use them as their primary account. At the opposite end of the scale, only 46% of residents from the West Midlands using a digital bank plan to make them their primary account.
“Technology has enabled digital-only banks and personal finance apps to offer some amazing features like spending analytics, automatically investing your spare change and safety features such as being able to instantly freeze and unfreeze your card.
“However our research shows that consumers still have their doubts about putting significant amounts of money in these accounts, and making them their primary ones. This scepticism should naturally soften over time as the technology becomes more widespread, but it’s clear that fintech challengers also have a way to go in convincing consumers that they are a safe, long-term option for their money.”
– Jon Ostler, UK CEO at finder.com
Previous research from finder.com found that a quarter (24%) of Brits will have an account with a digital-only bank within the next 5 years, with 1 in 10 (9%) saying they already have one.
Finder.com commissioned Onepoll to carry out a nationally representative survey of adults aged 18+.
A total of 2,000 people were questioned throughout Great Britain, with representative quotas for gender, age and region.
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Matt Mckenna UK communications manager M: +44 747 921 7816 T: +44 20 3828 1338
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Charlie Barton is a publisher at Finder. He specialises in banking and investments products, including banking apps, current accounts, share-dealing platforms and stocks and shares ISAs. Charlie has a first-class degree from the London School of Economics, and in his spare time enjoys long walks on the beach.
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