Banks losing relevance with mistrust and lack of innovation: EY

SINGAPORE (Oct 11): Up to 40% of consumers globally are reporting less reliance on their traditional bank and increased excitement about alternatives, according to the EY 2016 Global Consumer Banking Survey.

Traditional banks are losing relevance as consumers report a lack of trust, with only 48% of consumers globally trusting banks to keep their money safe, and 26% believing that banks provide unbiased advice for their financial needs lagging behind digital banks (29%) and other companies providing banking services (30%). Changing consumer behaviors and expectations set by digital innovators and increased competition from new players are also threatening the banks’ relevance.

The EY Bank Relevance Index (BRI) evaluates how customers interact with banks now and how they expect to do so in the future. Globally, retail banks scored a 75.1 out of 100, due to the impact of new competitors and banking services.

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