Digital banks are more popular with men
A survey conducted by Opinium for AltFi revealed that men are more likely to hold a digital bank account than women.
Over the past few years, digital banks and fintechs alike have experienced a meteoric rise to prominence, with many of them not even existing just five short years ago.
In a survey conducted in partnership with Opinium, as part of AltFi’s Digital Banking State of the Market Report 2020, it was discovered that more men tend to hold digital bank accounts than women.
Out of all the digital banks, most people banked with Monzo, with 38 per cent of those who said they held a digital bank account having a hot-coral card.
Revolut came in second place with nearly a quarter (23 per cent) of respondents having an account with them, with 27 per cent of those surveyed being male and just 19 per cent female.
Starling was another digital bank where women held more accounts than men according to AltFi and Opinium’s research, 24 per cent of those who said they had an account were female compared to 24 per cent male.
This data is also supported by new research released by Plum this morning.
Figures from money management platform Plum found that there is still a level of distrust among consumers, particularly women, towards digital banks.
Of the nine per cent who have linked a digital bank, nearly a quarter (22 per cent) have also linked a secondary bank account from a traditional bank, suggesting that Plum’s digital banking-friendly customers want the security of a backup account.
The fintech’s customers who linked digital bank accounts were also mainly men, with over half (51 per cent) being male and just 34 per cent were female.
Victor Trokoudes, CEO and co-founder of Plum, said: “There’s a lingering lack of trust in neobanks that still remains among our customers. Women, in particular, haven’t been won over as it looks like they are choosing to stick with traditional banks.”
“One issue is that you’re tied to opening a bank account with the neobank before you can do anything. This is a big commitment and requires a large amount of customer trust. Inevitably, becoming more bank-like to win that trust means the focus is on being an efficient bank rather than on making things more efficient and maximising customer money. ”
So it seems that despite amassing millions of customers in just a few years, the UK’s digital banks still have a long way to go when it comes to building consumer trust and getting more people to use them as their sole account.