Digital-Only Banks – Retail Banks for Retail Customers Only?
Digital-Only Banks – Retail Banks for Retail Customers Only?

Summary/Abstract: This paper explores how traditional banks perceive digital-only banks and the potential impact of digital-onlybanks on the retail segment of the banking sector. To obtain the main goal, we conducted in-depth semi-structuredinterviews with managers and directors representing different traditional banks with profound insight into thebank digitalisation process. The results indicate that, for traditional banks, the development of digital-only banksdoes not pose a threat or challenge that can significantly undermine their business. A high level of user experience,innovativeness, and lack of obsolete processes and technologies are the main advantages of digital-only banksthat attract retail customers. At the same time, the limited range and scope of services provided and issues withcompliance and trust translate into limited development opportunities.

• Details
• Contents