The rise of the digital banks
- Our analysis shows that over the next five years more than two-thirds of banking customers are likely to be “self-directed” and highly adapted to the online world. In fact, these same consumers already act much more digitally in other industries – booking flights and holidays, buying books and music, and increasingly shopping for groceries and other goods via digital channels. Once a credible digital banking proposition exists customer adoption will be breathtakingly fast and digital laggards will be left exposed.
- In today’s digitally obsessed world, retail banks are struggling to keep pace. Customers expect smart digital banking that is available across channels and tailored to their immediate needs. They want banking services to work like the payment, music, and shopping apps they use every day. But banks, on the whole, have failed to deliver.
- While Neobanks’ customer base across Europe has grown by more than 15 million since 2011, retail banks have seen a decrease of 2 million customers. By 2023, Europe’s Neobanks could have up to 85 million customers—about 20 percent of the population over the age of 14.