Kiwis lead online banking in survey

Kiwis’ favourite bank branch is their computer or smartphone, according to new research.

The Future of Finance report, from European finance company TransferWise, commissioned research firm YouGov to survey nearly 20,000 people in 16 countries on their preferred method of banking.

The findings showed that New Zealanders are big adopters of financial technology (fintech).

Eighty-one per cent of New Zealand respondents said they preferred to manage their finance online, leading the global charge in fintech. The Netherlands came in second at 79 per cent, while in the US and Japan, online banking was lower at 58 per cent and 57 per cent respectively.

Visiting a branch was the third most preferred way to bank in Australia, Brazil, the Netherlands, New Zealand and Singapore, with online and smartphones trumping bricks and mortar.

Online and mobile banking security wasn’t an issue for most respondents. In fact, over half (54 per cent) said they believed online verification was more secure than face- to-face or paper-based verification.

Fifty per cent of respondents believed banks focus mainly on profit and not what customers need.

“In many countries almost every service offered by a bank is now offered by a fintech company. For the first time ever, consumers have a real choice in how they manage their money,” the report said.

New Zealand was an outlier with a positive perspective on banks. Twenty eight per cent said they believed their bank offered great service and a fair deal, the highest result across the globe. By comparison, only 5 per cent of respondents in France and Germany felt the same way.

Only 44 per cent of respondents in New Zealand said they felt their bank focuses on profit over customers, slightly below the 50 per cent average. Australians were more sceptical with 60 per cent of respondents believing banks were prioritising profit. Spain was top at 70 per cent.

The majority of respondents were faithful to their bank with 69 per cent having been with the same bank for over five years. A large number of respondents (24 per cent) couldn’t really be bothered facing the hassle of finding a different bank.

The tide of cynicism could force change across the world, with 30 per cent saying they would consider using an alternative to a bank and 15 per cent happy to never use a bank again. However, two thirds (65 per cent) said they would never use an unregulated provider.