Entrust Survey tracks growing preference for digital banking services

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Entrust released the results of a new survey that tracks the changing preferences of banking consumers in the digital age. The Great Payments Disruption The survey is based on feedback from 1,350 consumers who use digital payment services in the US, UK, UAE, Canada, Germany, Saudi Arabia, Singapore, Australia and in Indonesia.


The results show that financial institutions will need to support digital banking options to attract and retain customers. The vast majority (88%) expressed a preference for online banking, with 59% preferring a proprietary application and 29% opting for banking through a web browser on a desktop computer.

Likewise, banks that can offer a range of payment options at an affordable rate should have an edge over their competitors. Low and flexible fee structures are a top priority for consumers when choosing a bank. This creates a opportunity for challenger bankswhich can disrupt the market with enticing features such as overdraft protection without any kind of fees.

On that front, Entrust noted that many financial institutions may no longer need to maintain a physical branch, with 86% of the American public indicating they would be willing to consider fully digital banking. However, banks that want to capture the whole market will still need physical premises for the time being to attract the 8% of customers who prefer to bank at a branch or the 3% who prefer to use an ATM.

Another key point of disruption is likely to be the rise of digital bank cards. Just over half (53%) of respondents have already received a debit or credit card digitally, and two-thirds would prefer to open an account online. This trend is only accelerating with the younger generations (Millennials and Gen Z), which means that contactless and digital payment cards could become an attractive sales pitch for future bank customers.

That said, banks will need to be able to ensure that they can protect people’s payment information. Ninety percent of respondents worry fraud in a digital environment, and many will switch banks if their trust is breached. Forty-two percent have been notified of a fraud charge in the past year, prompting 67% of those individuals to move to a new financial institution. Entrust suggested that strong security options like biometric authentication might help allay some of those fears.

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