A survey by Peopl Insurance found that 35pc of adults have low levels of trust in fintech providers.
Despite the growth of fintechs such as Revolut and N26 in Ireland, the public has low levels of trust in these service providers compared to other financial institutions, according to a new survey.
The survey by Peopl Insurance found that less than one in five people have a high level of trust in fintechs or traditional banks, while more than half have high trust in credit unions. Fintechs were the most likely group to invoke a low level of trust from the public.
Peopl Insurance, which provides insurance services in partnership with credit unions in Ireland, surveyed 1,000 people nationwide on their trust towards traditional banks, fintechs, credit unions and An Post.
More than a third (35pc) of adults said they have low levels of trust in fintech providers such as Revolut, N26 and Bunq. Low trust in these services was more common in women and people over the age of 55.
This was followed by traditional banks, with 27pc of respondents saying they have a low level of trust in these institutions.
Only 18pc of people said they have a high trust in fintechs, with the same result for traditional banks. Men and those from a higher socioeconomic background were more likely to have a high level of trust in fintech services.
The survey suggests that age plays a role in banking preferences, as traditional institutions such as credit unions appealed most to older consumers while newer fintech services appealed to younger cohorts.
For example, 77pc of those aged between 18 and 24 placed a high trust value in fintech, compared to 8pc of those over the age of 55.
More than half of those surveyed said they have a high level of trust in credit unions, while only 8pc reported a low level of trust in them.
Peopl Insurance CEO Paul Walsh said that it could be the “community-focused ethos” of credit unions that appeals to the public over banks and fintech platforms.
“The mistrust in fintech is perhaps driven by the novelty of the technology, low awareness of its functionality, concerns around cybersecurity and data uses and the lack of a bricks-and-mortar shopfront, particularly among older consumers,” Walsh said.
“Earning the public’s trust as a financial provider is not an easy task, but it’s absolutely crucial to any organisation that wants to have a meaningful impact on people’s lives for any real length of time.”
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