Majority of FinTech customers happy to switch back to traditional institutions

A majority of FinTech customers would happily use a traditional bank (66 per cent) or insurer (61 per cent) that offered similar services and pricing as a neobank or InsurTech rival, a study from Oliver Wyman claims.

The research compiled responses from 1,000 individuals across UK, Spain, France, Germany and Italy to understand consumer sentiment.

Global management consultancy Oliver Wyman found that trust in traditional banks and insurers is relatively high, sitting on an average of 60 per cent. German respondents have the most faith in traditional institutions with 71 per cent, then the UK with 69 per cent. France, Spain and Italy respondents showed less trust, with 58 per cent, 56 per cent and 48 per cent, respectively.

FinTech users in Italy were the most likely to move back to a traditional bank offering if a similar proposition and pricing was offered, with 80 per cent of those surveyed stating they would switch back. French consumers were the least likely of all, with only 58 per cent suggesting they would move back.

Around 65 per cent of UK answerers would move back, while 62 per cent of Spanish would do it and 60 per cent of Germans.

In regard to moving back to a traditional insurer, 66 per cent of both French and Spanish respondents said they would move do so, followed by Britons (62 per cent), Germans (56 per cent) and lastly Italians (53 per cent).

Simon Low, Partner and Head of EMEA, Retail and Business Banking, said, “Our survey reveals that traditional banks are well placed to re-capture customers who have switched to neo-providers. By capitalising on high levels of consumer trust, they have the opportunity to gain market share by developing the right digital offering.”

Copyright © 2019 FinTech Global

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