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Quarter of Brits to use digital-only bank within five years

Quarter of Brits to use digital-only bank within five years

A quarter of Brits will have a digital-only bank account within the next five years, according to a personal finance comparison website.

The research by Finder.com, which questioned 2,000 adults across the UK, found 24 per cent intended to open a digital-only bank account over the next few years, with a further 21 per cent suggesting it was likely once they had more information.

The research comes as the UK celebrates the first anniversary of open banking, which allows banks to share customer account data with external companies to improve the products and services they offer.

Since last January, 4.5 million adults in the UK have opened an account with a digital challenger bank, including the likes of Monzo and Starling.

But not everyone is convinced by the digital revolution as Finder.com's research showed most adults in the UK had no plans to open an account within the next five years, while one in five did’t know what a digital-only bank was.

The main reason to not open a digital-only bank, according to 61 per cent of the respondents, was because their current bank had treated them well. Almost half of those surveyed also preferred the option of speaking to someone in person.

Jon Ostler, chief executive at Finder.com, said: "Our research also showed that a lot of Brits still aren’t interested in taking all of their finances online.

"Open banking, for example, is only a year old and some people may not be comfortable with having their data shared between companies yet - the problems that large banks have had with ‘digitalising’ their services also doesn’t help the image of online banking."

For those who have or intend to go digital, it was the ease and convenience of conducting everything online that was the main driver, while a third believed the rates paid were likely to be better than those offered by traditional banks.

Mr Ostler added: "When you consider how long the banking industry went without any real technological advances or change to the status quo, the speed that digital challenger banks have established themselves has been very impressive.

"When done right, digital banking can offer customers the speed, convenience and transparency that is becoming increasingly important for consumers in most sectors.

"It will be fascinating to see how the sector evolves over the next few years, and if it can cope with the increasing consumer demand that we expect to see."

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