U.S. consumers are concerned about the security of digital-only accounts

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  • Many American consumers are concerned about the security of digital-only bank accounts.
  • Established banks have a competitive advantage over neobanks in digital consumer confidence.
  • Insider Intelligence publishes hundreds of banking industry research reports, charts, and forecasts. Learn more about how to become a customer.

According to a new survey from PYMNTS and Optherium, a significant portion of American consumers do not wish to shift their primary banking relationships to exclusively digital players due to security concerns.

digital-only bank account holders and penetration


Insider Information


At 47.4%, data security was the issue most often cited by survey respondents who are either “slightly” or “not at all” interested in changing their primary status to one.

digital only bank
backed by a large company.

Older respondents are more likely to cite data security as a concern:

  • For baby boomers and seniors, 32.6%.
  • For Gen X, the level drops dramatically to 25.2%
  • Millennials and Gen Z have responses of 16.2% and 17.8%, respectively.

The results indicate that established banks have a competitive advantage over

neobanks
in digital consumer confidence. The perceived superiority of incumbents in protecting consumer data will come in handy now that

digital bank
has become the norm:

  • The survey shows that 82% of consumers use some sort of digital method to log into their bank accounts.
  • Results by channel show that the use of mobile applications is the most popular, with 41.4% of respondents choosing it as the most used method. Digital banking through a computer is the second most used response, at 26.1%.

People with above-average digital trust in their bank are more likely to be valuable customers in some ways than those with below-average trust, according to our 2021 Banking digital trust report:

  • 38.8% of people with above average trust are willing to open a new account or product with their bank, compared to just 21.3% for those with below average trust.
  • 37.1% of people with above-average trust reported having multiple accounts with their bank, compared to only 28.3% of those surveyed with below-average trust.

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