Two fifths of Brits don’t trust challenger banks at all, while over half are worried technology will put their data at risk, according to a new study.
The research, conducted by Fujitsu, suggests that concerns over security are slowing the British public’s adoption of technology.
Of more than 2,000 Brits surveyed, 40 per cent said they don’t trust challenger banks at all, and 67 per cent said they are more likely to do business with banks that have branches on the high street.
Over half (54 per cent) of British respondents were concerned technology would put their data at risk, with 49 per cent saying such concerns were the key reason they are not planning to adopt more digital banking services in future.
“Technology has taken banking by storm,” said Fujitsu’s Ketan Parekh. “The research shows that public trust, above all other reasons, is what’s impacting the financial services sector, and holding back challenger banks from becoming mainstream.”
The research also reveals a generational divide in attitudes towards digital banking. While half of 25-34-year-olds said they were excited about mobile banking, only 20 per cent of those over 55 were excited about the technology.
Their use of different technologies can also attract or deter consumers from banks. Brits are more likely to bank with providers that use 5G and near-field communication, but are generally deterred by cryptocurrencies and artificial intelligence.
The implementation of biometrics divided the respondents most strongly, with 46 per cent saying the technology would make them more likely to use a bank but 24 per cent saying it would be a deterrent.
“While bank branches still have a place in the financial lives of Brits, there is certainly an appetite among consumers for technology and enhanced experiences,” said Parekh.
“To be successful, traditional and challenger banks need to educate the public about the benefits of new technologies in financial services, and build a relationship based on trust.”