Neobanks: 10% now use app-only bank as main account
The popularity of app-only banks has soared in recent years but are far from fully mainstream as users' main accounts.
Just 1 in 10 (12 per cent) of UK banking customers use an app-only bank as their main bank, according to a recent survey.
Nearly 2 in 5 (38 per cent) have a digital-only bank account alongside a traditional bank with a branch network.
Accenture found, in a survey of 2400 UK adults in February 2023, nearly 1 in 3 (32 per cent) still prefer to do all their banking in person.
When broken down by age categories, the figures of those preferring legacy banking services were more pronounced in older generations.
More than of half (53 per cent) of 18-24 year olds have one digital-only account. Nonetheless, among Gen Zs and Millennials cohorts, nearly 1 in 5 (19 per cent) of 18-34 year olds also said they prefer in-person banking.
For those 45-54 year olds the figure was 30 per cent and for those aged 55+ it was 44 per cent.
However, three in five still avoid digital-only banks. Wanting to visit a branch or speaking to staff (35 per cent) were the two most popular reasons cited.
Data security came next with nearly 1 in 5 (19 per cent) still concerned and financial stability (18 per cent) of digital-only banks.
“It is a tricky conundrum for the banks. On the one hand it’s plain for all to see that customers continue to do more banking digitally and that they value great digital experiences via mobile apps and digital channels,” said Tom Merry, Managing Director, Banking Strategy at Accenture.
“At the same time, there is still a significant part of the population who want human interaction. The big banks must balance a fantastic digital experience with human experiences when they matter,” he added.