Digitalization Neobanks poplular among young consumers

Today, the digital association Bitkom published new survey results about Neobanks, in which banking services are handled entirely digitally via smartphone. According to the results, 25 percent of Germans can imagine doing their banking at a Neobank and nine percent already have an account with such a bank.

For this representative survey, Bitkom Research interviewed a total of 1,003 people in Germany aged 18 and above on behalf of the digital association Bitkom.

These are further details:

  • 25 percent of respondents could imagine doing their banking at a smartphone bank or Neobank, but only 14 percent said having their main account at a Neobank would be an option.
  • For more consumers, such an account would be considered as a supplement to a direct bank account (45 percent) or as a supplement to an account at a traditional branch bank (35 percent).
  • 38 percent of 18- to 29-year-olds were open to Neobanks, while eleven percent are reluctant. Among the 50- to 64-year-olds, more consumers were reluctant (32 percent) than interested (17 percent). 48 percent of those above 65 years old were against Neobanks and only ten percent were open to it.
  • Among the advantages of Neobanks, consumers mentioned ease and speed of opening an account (43 percent), low costs (38 percent), a very good financial overview (37 percent), rapid and continuous improvements in banking services (34 percent), particularly secure smartphone access via biometric identification (23 percent) and the comparatively better usability of the Neobank apps (eleven percent).
  • Disadvantages, on the other hand, were the lack of individual advice (45 percent), difficulty to do banking on their smartphone (23 percent), lack of trust compared to traditional financial institutions (20 percent), concerns that Neobanks might disappear from the market (17 percent), the digital customer service and fears of not being able to access one's money without a smartphone (13 percent each).
  • Ten percent of consumers felt fundamentally overwhelmed by digital banking in general – 12 percent saw no disadvantages of Neobanks at all.

Achim Berg, Bitkom President, commented: "For many people, the smartphone is the digital hub for everyday life and work. Shifting one's own bank completely and exclusively to this device is therefore just another logical step. Neobanks have great potential, which is far from being exhausted in Germany. We will see major changes in the coming years, especially in individual financial advice. This includes the use of artificial intelligence for automated personal advice as well as the use of video advice, which can be accessed conveniently, cost-effectively and independently of time and place."

Source: Bitkom

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