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Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – Supplier Enablement: Get More Flexible and Technical
- Online-only bank customers trust their digital bank roughly the same amount as they trust national banks (both score 53%)
- But when rated vs. a slate of institution types, online banks garner the lowest number of top ratings (14% vs national banks 24%)
- 36% of US households use an online-only bank, almost as many as use a credit union, 41%
- Yet only 8% of online banking consumers consider online-only banks their primary bank (vs. 66% full-service bank, 18% credit union)
- Online only bank customers tend to use high-interaction products like Checking (75%) and Savings (65%) accounts – historically tied to branch banking
- The largest digital bank identified by Mercator has nearly a quarter trillion dollars in deposits and grew nominal deposits 37% in 2018.
About this report
The revolution in electronic payments has been underway for quite some time but has been much more visible in consumer payments than in the more complicated use cases associated with business-to-business (B2B) payments. Recent advancements include faster speed of payment, increasing options for cross-border solutions, and greater choices for access to such solutions.
In a new research report, Supplier Enablement: Get More Flexible and Technical, Mercator Advisory Group reviews how banks enabling suppliers to accept card payments and other forms of e-payment need to change their thinking and technology and adapt to the suppliers’ point of view. Not doing so will result in missing a large potential opportunity to capture a portion of the trillions of shifting payments volumes moving away from paper.
“The annual growth in B2B noncash payments globally is estimated at about 6.5%, and Mercator Advisory Group believes that the e-payments portion of that growth is about two percentage points higher due to the decline of checks. This varies by region, in particular North America, where the U.S. has been lagging in the elimination of paper process and payments versus some other areas of the world”, commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, author of the report. “ When it comes to the cards business, the enablement challenges have been steeper, both because of the change involved for suppliers and the friction of perceived acceptance costs. The industry has pursued best practice attempts to gain wider acceptance with modest success and now needs to try something new.”