‘Super-apps’ top consumers’ preferences

‘Super-apps’ top consumers’ preferences

In the face of ever-increasing digitisation and technological advancements, incumbent banks will need to “act now” to protect their advantages, if they want to remain relevant to consumers in the future, a consumer banking survey reveals.

The EY 2021 NextWave Global Consumer Banking Survey explored consumers’ primary financial relationships (PFR), appetite for digital banking solutions and demand for new, personalised online products.

The survey included 12,000 consumers in 14 diverse markets and found that incumbent banks lead in maintaining primary financial relationships (79 per cent), while 10 per cent of respondents said they use a neobank for a product or service.

Tim Dring, EY Oceania banking and capital markets leader, said while traditional banks retain advantages in areas such as trust, neobanks are starting to gain ground in tech.

“The Australian banking sector is entering a period of significant change as market participants respond to new technologies, the implementation of open banking and increasing consumer expectations [around] tech-driven convenience,” Mr Dring said.

The survey results found that while 72 per cent of Australian respondents said they either completely or mostly trust their bank, neobanks will begin to penetrate products like investments and loans as customer tenure increases.

Many neobanks are already developing insurance and investment products aligned to the needs of their customer base.

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Source: ‘Super-apps’ top consumers’ preferences | nestegg