\Fintech News/ Majority of consumers think the neobanks will be dead in a year Only 45% of UK consumers believe neobanks will survive another year By Freya Pratty 8 December 2020 \Fintech European fintechs spy opportunity in Visa’s failed Plaid deal By Ryan Weeks 20 January 2021 \Fintech News/ Majority of consumers think the neobanks will be dead in a year Only 45% of UK consumers believe neobanks will survive another year By Freya Pratty 8 December 2020 Only 45% of UK consumers believe that neobanks will survive the next 12 months, according to new research from Accenture. The startlingly high number shows the trust gap that still exists among many consumers for the new breed of challenger banks such as Starling, Monzo and Revolut. This comes despite the success of these companies in winning over millions of new users, particularly amongst the young. Advertisement The figures, which come from polling 3,000 UK consumers between July and August, suggest an opportunity for existing lenders to fend off the threat of the challenger banks thanks to being viewed as more steady and secure. “With such low confidence in neobanks’ long-term survival, it’s clear that customers are seeking greater stability and consistency from their existing financial services providers,” says Peter Kirk, Accenture’s UK customer insight lead. The same numbers showed that only 10% of people would put “a lot of trust” in neobanks to look after their financial data. Only 20% of UK consumers polled would place no trust at all in fintech companies to look after their financial wellbeing. “The challenge is on to create propositions that effectively reconcile the rapid and inevitable shift to digital in ways that feel more personal and relevant,” said Kirk. The research also found lower trust in the traditional banking sector that the last time the survey was done two years ago. Only a third of consumers in the UK trust banks to look after their financial well being — down from 44% last time round. The results suggest that it’s the shift to digital communication that has eroded trust across the banking sector.. Whilst the number of people willing to speak to a human advisor via video call had increased significantly — 46% compared to 12% before the pandemic — only 29% said they would place complete trust in the advisor, compared to 52% who would trust an in person advisor completely. “Covid-19 has dramatically accelerated the shift to digital at a pace banks could not have foreseen and this is threatening their relationships with customers,” says Kirk. “It has also forced certain pockets of consumers, who primarily relied on face to face banking services, into the digital world. This has all had an unintended impact on consumer trust and the overall banking experience.” Freya Pratty covers news at Sifted. She tweets from @FPratty Advertisement Help Sifted get bigger and better (and get a sneak peak at our future plans). Please take our reader survey. Take the survey Terms of Use Related Articles Monzo founder Tom Blomfield is quitting the digital bank after asking execs for “help” By Isabel Woodford Click here to read more 21 fintechs to watch in 2021, according to top founders By Isabel Woodford Click here to read more Meet Twisto, the Czech Republic’s answer to Klarna By Freya Pratty Click here to read more Inside Revolut’s bid to become a bank By Isabel Woodford Click here to read more Get the best of Sifted in your inbox By entering your email you agree to Sifted’s Terms of Use Sign up to \Future Proof Sifted’s weekly \Corporate Innovation roundup email By entering your email you agree to Sifted’s Terms of Use Most Read 1 \Fintech Inside Revolut’s bid to become a bank 2 \Venture Capital Europe’s top climate tech investors 3 \Mobility Glovo partners with real estate investor to pile €100m into ‘dark stores’ 4 \Venture Capital Klarna cofounder Niklas Adalberth’s Norrsken Foundation launches €100m impact fund 5 \Mobility Last-mile-delivery startup Budbee raises €52m as ecommerce booms Join the conversation Subscribe Notify of new follow-up comments new replies to my comments
Monzo founder Tom Blomfield is quitting the digital bank after asking execs for “help” By Isabel Woodford Click here to read more