Kiwis prefer smartphone over bank branch

Most of us are more interested in banking online or on our smartphones than visiting a branch. Photo / File

Kiwis' favorite 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 across the globe 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 comparatively 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.

Cynical but faithful

The research also showed that the majority of people around the world are disillusioned by banking institutions. 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, who share some of the same institutions, were more sceptical with 60 per cent of respondents believing banks were prioritising profit. Spain led the cynicism with 70 per cent.

Despite some trust issues with banking institutions, the majority of respondents were faithful to their bank with 69 per cent having been with the same bank for over five years.

Most people said they didn't change banks because they believed they had the best available option, or were unaware of alternatives. A large number of respondents (24 per cent) couldn't really be bothered in facing the hassle in finding a different bank.

From bank to non-bank

The tide of cynicism about banking institutions could force change across the world, with 30 per cent saying they would consider using an alternative to a bank and 15 per cent saying they'd be happy to never use a bank again.

However, regulation is still a drawcard for many with two thirds (65 per cent) of respondents said they would never use an unregulated provider.

"The shift from bank to non-bank is at different stages in different countries, with various factors at play from how consumers view the existing providers to how encouraging the regulatory landscape is of innovation," the report said.

"It's an industry at the end of its first wave of disruption."