Member Exclusive, New banks

Incumbents continue to be perceived as the safer choice among customers; challengers keep trying

  • People seem to feel safer with incumbent banks.
  • Challenger banks keep working to gain trust.
close

Email a Friend

Incumbents continue to be perceived as the safer choice among customers; challengers keep trying

It seems that when it comes to gaining user trust, incumbent banks remain at the top. 82 percent of customers reported being totally happy with their incumbent banks, according to an EPAM survey of over 4,500 consumers in the U.S., U.K., Hong Kong and Singapore. And when those surveyed were asked what would stop them from switching to a new bank, 35 percent reported trust as a main reason.

Challenger banks haven’t been around long enough to get the instinctive trust a long-existing brick-and-mortar bank gets. Covid-19 has increased people’s financial anxieties, another obstacle challenger banks need to reckon with. 

But challenger banks continue to focus on ways to circumvent this problem.

German challenger bank N26, which just got permission from the Brazillian Central Bank to start lending there, continues to rely on a simple app experience to make up for a lack of face-to-face experience. 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account

0 comments on “Incumbents continue to be perceived as the safer choice among customers; challengers keep trying”

New banks

Tiller: the personal finance platform replacing Microsoft’s Money in Excel

  • Excel is popular among users as a platform to manage money, and now Microsoft is promoting a third-party developer to make it fitter for the job.
  • Tiller connects a spreadsheet directly to a user's bank, where it then automatically categorizes and display's a user' financial data.
Subboh Jaffery | June 22, 2022
New banks

Credit Karma introduces new cash back rewards program for debit consumers

  • The company will now reward every purchase made at a Cardlytics partner merchant with instant cash back.
  • Consumers will be able to reap rewards for paying with Credit Karma Visa debit card at stores like Adidas.
Rabab Ahsan | June 21, 2022
New banks

The transformation of traditional banking: 3 questions with Rohan Amin, Chief Product Officer at Chase

  • What kind of structural changes were caused by the pandemic in the traditional banking sector?
  • Rohan Amin, CPO at Chase, talks about digital channels in banking, growing fintech competition, and what Chase intends to accomplish in the future.
Sara Khairi | June 20, 2022
Member Exclusive, New banks

Banking Briefing: The SMB/fintech fairytale & what makes a successful challenger bank

  • The recent news about Brex could be a cautionary tale for other SMB-focused fintechs.
  • Plus, MX's VP of product gives his thoughts on what makes a successful challenger bank
Rivka Abramson | June 20, 2022
New banks

Now that Marcus by Goldman Sachs’ acquisition of GreenSky is complete, what’s next for the combined firm?

  • In September 2021, Goldman Sachs announced it was acquiring home improvement lender, GreenSky.
  • After closing the deal earlier this year, leaders of the combined entities are focused on further building out the Marcus digital consumer banking platform.
Zachary Miller | June 13, 2022
More Articles