Digital-only banks losing their appeal

Is it digital only banks that are losing their appeal or the fact that many of them do not offer lending as per the traditional bank model. I would think that a digital only bank is growing in appeal for transactional functionality and even savings. If we are saying that banks = lending, then the headline and supporting research is probably correct.

Interesting conclussions but I wonder what the sample age groups were and who funded such an expensive multi country survey? Guys the genie is out of the bottle and try as hard as you like Digital Only is here to stay and will continue to fragment the staus quo!

Banks without a single branch office but with mobile, web and IVR presence have been toiling in Sweden for twentyfive years with little success. people tend to stick to the traditional providers with brand, branches, IVR, web and mobile app presence. The price people pay for daily bank services is so low that most poeople do not care if you get at most a 20 Euro annual price reduction on current account, debit card, credit card, bill payments etc. in the digital-only bank and for that give away the possibility of walking into a branch and sort out an issue. With deposits and mortgage loans people are more price sensitive but the digital only players normally cannot compete on mortgage rates and deposit specialists that normally have consumer credit as their main business beat the digital banks as well.

Only around 100 people per country, not sure the sample size is enough to draw such conclusions. Traditional banks are upping their game by adding digital channels, there is room for both models in the UK.

This is purely a snapshot. Next year it will change again and as the. The new generation will want digital only and they will want a mortgage approval immediately, a loan approval immediately. It is what they have come to expect. I can see the suspicion that Fintechs might not hold my data securely but once there is some super app out there that uses PSD2/Open Banking APIs to offer a real added value service that is when we will see the demise of traditional Banks.