[CHART] Here's why US customers have muted interest in switching to a nontraditional bank

Fully understand neobanking landscape with this chart.

NEW CHART & DATA: FINTECH US consumers don't want to use neobanks, yet… The European neobank market is crowded, while its US counterpart is still lagging behind. This might have to do with US customers not having much interest in switching to a nontraditional bank — only 9% of customers said they would be most likely to switch to an online bank with no branches, according to a study from cg42 seen by Business Insider Intelligence. The top 10 retail banks, including Bank of America and Wells Fargo, remain the favorite for the majority of US consumers surveyed, with 51% being most willing to switch to one of them. Access Full Chart Data → * This chart was delivered to Business Insider Intelligence's Ultimate Fintech & Payments Research Bundle subscribers. You can get access to this chart and other timely updates when you sign up today. This muted interest probably comes down to a lack of awareness — and options. There are only few neobanks operating in the US right now, such as Varo Money, which recently received preliminary approval for a banking license, and Simple, which is owned by Spanish banking giant BBVA. As such, US consumers likely have relatively little experience with this new type of financial institution (FI), which probably affects how willing they are to bank with such a challenger. This lack of options is probably tied to regulatory barriers that make it very difficult to obtain a banking license in the US. Incumbents would not be wise to rest on their laurels. Given the market is set for an influx of players from Europe, and Varo Money's successful banking application could inspire more homegrown options, time will likely increase customer awareness of neobanks, and thus willingness to bank with them. Moreover, if current consumer pain points, including banks being perceived as dishonest and not offering competitive prices, aren't resolved, the top 10 banks risk loosing 11% of their customers. Subscribe risk-free to view the full analysis Here's a summary of what you'll receive when you subscribe to the Ultimate Fintech & Payments Research Bundle today: 78 immediately accessible research reports and data-sets. At least 20 new Fintech reports over the next 12-months. Insightful newsletters and charts about everything important taking place within the fintech space. 14-day money back guarantee period so you can access all of the above risk-free! Other chart highlights you don't want to miss Banks need to find more effective digital strategies Banks are upping their efforts to become more digital, with many… Access Full Chart → Consumers plan on using financial services from tech companies in the next 5 years Tech companies have recently been taking more steps into the finance space, forcingy… Access Full Chart → These are just a few of the charts made available to Business Insider Intelligence subscribers. Subscribe to Business Insider Intelligence's Ultimate Fintech & Payments Research Bundle today and you'll have instant access to 100s of charts like these, daily briefings in six key coverage areas and a members-only Research Center filled with insightful reports. Sign up Risk-Free Today Copyright © 2018 Business Insider, Inc. All rights reserved.

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