Person setting up internet banking

With damning allegations made against major banks as a result of the Banking Royal Commission, more and more people are turning to digital-only banks. With 1 in 5 Australians not online, how could this impact upon the future of banking in Australia?

Digital-only banks focus on being tech-savvy, adaptable and trustworthy, offering what the bigger banks struggle to offer to its customers. By filling this gap in the market, these banks have attracted a new wave of customers who bear no allegiance to any particular bank.

A digital-only bank account is also extremely easy to set up, with an average set up time of two minutes and two seconds. From there, the account can be used instantaneously to pay for things and to transfer money. 

With the simplicity offered by digital-only banks will the banking industry be disrupted, similarly to Uber's impact on the taxi industry? 

Most notably, what does this mean for those who are not digitally literate? Many older Australians are intimidated and scared by the concept of Uber, so how would this fear transfer over to such an important personal issue such as banking? 

As a result of this disruption banks may see a decline in the need for physical services in the form of branches and office spaces, and invest in their digital identities. 


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