A Cashless Country & The Future of Banks

Download the full report to understand why:

• Cold hard cash is at a crossroads. Over half of respondents (51%) are willing to abandon paper cash altogether in favor of digital payments and currencies. The rest, (49%) don’t want to give it up. Yet, what they would do in theory differs with what they’re doing in reality: 56% still pay with cash at least weekly, revealing deep-rooted habits that digital alternatives must match in cost and convenience.
• Digital-savvy generations aren’t necessarily all in on digital alternatives to cash. Over half of Gen Zers (51%),  Millennials (53%) and Gen Xers (51%) are open to a cashless life, but even the most digitally native among them cite privacy and fee concerns as reasons to keep cash around.
• Digital challengers are catching up to banks–and distorting consumers’ views of what banks are. Younger consumers view banking as a category of services that are not necessarily restricted to any particular institution. Only 64% of consumers classify JPMorgan Chase as a bank, while over 30% consider digital payments providers like Cash App and Chime banks, despite their lack of direct FDIC insurance.
• Once their number one selling point and differentiator, banks’ relative safety is overshadowed by lots of choice and even more convenience. Only 56% of Gen Z know that only traditional banks provide FDIC insurance, insuring up to $200,000 of their deposits, compared with the 80% of Boomers who are well aware of this key distinction. This points to the idea that the traditional “bank equals safety” message is losing traction–and no longer offers the same competitive edge over emerging bank-like options.