Digital banking ‘part of everyday life’: Mastercard

Six out of seven people use digital banking solutions at least once a month and 38 per cent do so on a weekly or even daily basis, according to new research.

Mastercard commissioned TNS Kantar to take 11,014 samples were taken from 11 different markets, finding that 63 per cent use mobile banking apps from traditional banks and 20 per cent from digital-only banks.

The research revealed that security was the most important criteria for using digital banking solutions at 67 per cent, while convenience was ranked highest by a third of those surveyed. The biggest advantage of digital banking solutions is because they are time-saving (66 per cent) and easy to use (65 per cent).

When it comes to the future of banks, a growing number of Europeans say they will consider switching to a digital bank at some point – rising from 49 per cent when the same study was carried out in 2017 to 54 per cent in 2019.

People aged between 18 and 29 are the most disloyal, with 63 per cent considering a change. In the UK, 18 per cent are considering changing their bank for a digital-only challenger during the next 12 months, compared to a European average of 13 per cent.

However, as traditional banks offer more and more digital banking products, an increasing number of people (39 per cent in 2019 compared to 32 per cent in 2017) said they will stay with their bank.

In September, the second Payment Services Directive (PSD2) will come into effect across the European Union, meaning that apps and other third parties will be able to access information from people’s bank accounts, as well as trigger payments from them, provided that they will have been given explicit permission by the customer.

But the study showed that most people (85 per cent) are still not aware of this initiative or have little knowledge about it.

Nevertheless, new digital services enabled by Open Banking are asked for by many Europeans: almost half (43 per cent) want to use an app to see, in one place, current/savings accounts from all their different banks, and more than a fifth (22 per cent) want a service that can help them manage their money and forecast spending patterns based on analysis of all their data.

With trust and security being major pillars of the open banking ecosystem, banks have the advantage of being - by far - the most trusted source when it comes to information about managing money. The research revealed that 70 per cent of Europeans see banks as their preferred go-to source, although the British (59 per cent) have the least confidence in them.

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