APRIL 23, 2018
Digital Banking Trends — Globally
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society
around the world want more digital options from their financial institutions.
Whether by necessity or choice, in the richest and the poorest countries,
people are embracing digital banking. Two recent global studies highlight
some of the key trends internationally.
67% of global customers are already using
People love digital banking – the majority of customers are using it
already, and 86% want digital payment, 68% want digital personal loans and 62%
want digital mortgages.
67% of Americans would try a new digital
Less receptive than customers in India or China, Americans still show
openness to new digital banking options.
52% of adults worldwide sent or received a
digital payment last year.
Digital payments are increasingly popular, with the number of users having
risen by 11 percentage points since 2014. Even in developing countries, 44% are
on board with digital payments.
140 million unbanked individuals opened
their first account last year.
Almost 70% of adults globally now have a bank account, in no small part due
to the growth of digital payments – many opened their account specifically to
receive payment from a job that paid digitally.
40% said their traditional bank didn’t help
them with personal finance management.
These respondents said non-bank alternatives were better suited to help them
manage their personal finances and look into investment options – a red flag
for institutions that aren’t doing enough to guide their customers to financial
Traditional banks are more trusted than
Digital banks are still lagging behind traditional institutions when it
comes to trust and stability, but digital banks deliver superior experiences
and better rates of return. As digital banks gain even more of a foothold,
their perceived stability is likely to grow in the eyes of customers, who may
be wooed away from traditional institutions altogether.