View: Will customers make new digital banks their primary bank?

With smartphones in hand, customers the world over are changing how they bank. Especially millennials, who now prefer using digital channels for their end-to-end financial needs.

As every aspect of life is being taken over by the digital revolution, millennials expect banks to take out the monotony from financial decisions by offering more personalized products that cater to every person’s unique needs.

Studies show that there has been a growing openness to digital banking globally in recent times. In the US, 14.2 million customers now consider a digital bank as their primary bank, which is a 67% upsurge when compared to January 2020. The UK has also seen a rise in the number of people who have a digital-only bank account, which signals a 165 percent increase in the past 12 months. In fact, about 23 percent of adults in the UK have a digital bank account. In India, digital transactions rose by 23% in June 2020 after the gradual re-opening of our economy. The development is significant as India is the only country apart from China to have a fintech adoption rate of 87% (as of March 2020).