# Fintech inertia: consumers not unhappy with traditional banks Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2018-01-25 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Consumer Inertia in Fintech Sector Meta Description: Discover why consumers are hesitant to switch banks despite dissatisfaction. Learn how fintech providers can seize market opportunities. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/fintech-inertia-consumers-not-unhappy-with-traditional-bankshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd250118-1-1736843044466-compressed.jpg) _New research explores reasons for consumer inertia in fintech sector_ New research conducted by True in partnership with Strive, to explore what’s behind slow consumer adoption of new digital financial services, has found that contrary to conventional wisdom, people are not unhappy with their traditional high street bank. The [report by True](https://www.truedigital.co.uk/articles/how-can-brands-break-inertia-in-financial-services) ‘Breaking Inertia: What will it take to change customer attitudes to financial services?’, included consumer research which found that 86% of people aged 18 to 55 years old rated their bank 7 out of 10 or more for satisfaction. And 58% agreed with the statement ‘there is little to be gained from switching banks’. However, despite this finding, there is still strong [market opportunity for fintech providers as other factors such as cost](https://www.financedigest.com/modified-flour-market-overview-cost-structure-analysis-growth-opportunities-and-forecast-to-2032.html "Modified Flour Market Overview, Cost Structure Analysis, Growth Opportunities And Forecast To 2032") are still significant driving factors in consumer decision-making. Over two-thirds (69%) of those surveyed agreed ‘if a financial [product offers a clear](https://www.financedigest.com/sales-growth-of-automotive-clear-vision-systems-market-is-driven-by-production-of-new-vehicle.html "Sales Growth Of Automotive Clear Vision Systems Market Is Driven By Production Of New Vehicle") benefit I’d consider it regardless of who was offering it’. In fact, when asked the most important factor in choosing a new provider cheaper fees and charges were ranked the highest by 37% of those surveyed. Fifty eight per cent (58%) of respondents were comfortable with the idea of [big banks](https://www.financedigest.com/big-bank-ceos-to-sell-lawmakers-on-relief-diversity-efforts-amid-economic-regulatory-challenges.html "Big bank CEOs to sell lawmakers on relief, diversity efforts amid economic, regulatory challenges") acquiring fintech start-ups, proving that they weren’t against technology but that disruption alone is not enough of a reason to switch to a new provider. “The [era of open banking](https://www.financedigest.com/why-open-banking-heralds-a-new-era-of-ecommerce-merchant-and-bank-collaboration.html "Why Open Banking Heralds a New Era of eCommerce Merchant and Bank Collaboration") is upon us and these findings help established incumbents and new fintech propositions understand what they can do to get people to care enough to move their money,” Tim Jones, MD True. Other key findings in the report, which also includes qualitative research and case study material, were centred around some of the misconceptions [fintech companies](https://www.financedigest.com/7-cyber-threats-fintech-companies-should-watch-out-for.html "7 Cyber Threats FinTech Companies Should Watch Out For") often build their proposition upon. Namely, that a brilliant tech or UX interface will be a [key factor](https://www.financedigest.com/automotive-air-vent-assembly-market-size-key-players-growth-factors-regions-and-applications-industry-forecast-by-2027.html "Automotive Air Vent Assembly Market Size, Key Players, Growth Factors, Regions and Applications, Industry Forecast by 2027") in acquiring customers. This was found to be important in the report, but perhaps not given the gravity by consumers fintech companies sometimes assume. When respondents were tested on customer experience using Barclays and Starling sign up process, the majority preferred the latter experience, but were still reluctant to switch accounts. The disruptor has to provide reassurance that they are legitimate, secure and worth the effort. Appetite for face-to-face interaction and ‘help from a real [person’ should also not be underestimated by new digital](https://www.financedigest.com/personalized-digitization-to-drive-the-autism-therapy-market.html "Personalized digitization to drive the Autism Therapy Market") providers. Sixty five per cent (65%) of those surveyed said they thought Barclays, Lloyds and other traditional banks would offer the [highest quality](https://www.financedigest.com/healthcare-quality-management-market-is-expected-to-register-highest-cagr-of-12-during-the-forecast-period-2021-to-2031.html "Healthcare Quality Management Market Is Expected To Register Highest CAGR Of 12% During The Forecast Period 2021 to 2031") advice, a perception attributed to the reassurance of their high street presence. Triodos Bank is a global pioneer in sustainable banking that launched a new online [current account](https://www.financedigest.com/euro-zone-current-account-swings-back-to-a-surplus-in-june.html "Euro zone current account swings back to a surplus in June") in the UK in 2017. “The response we’ve had to our new current [account indicates that people are motivated to switch banks](https://www.financedigest.com/now-is-the-time-for-banks-to-introduce-intelligent-account-analysis.html "Now Is the Time for Banks to Introduce Intelligent Account Analysis") – they just needed a bank to reflect their values. Switchers to Triodos know that we are completely transparent about where we [lend their money](https://www.financedigest.com/how-does-hard-money-lending-work.html "How Does Hard Money Lending Work?"), and that it is working towards positive social, cultural and environmental change. People will change their behaviour, but only for [things](https://www.financedigest.com/the-bank-of-things-bot-has-arrived-but-what-does-it-mean-for-banks-2.html "The Bank of Things (BoT) Has Arrived: But What Does It Mean for Banks?") that are meaningful for them.” Bevis Watts, Managing Director, Triodos Bank UK. To download a full copy of the report please visit: [https://www.truedigital.co.uk/articles/how-can-brands-break-inertia-in-financial-services](https://www.truedigital.co.uk/articles/how-can-brands-break-inertia-in-financial-services) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---