Almost 800,000 to open digital-only bank accounts by 2025

Irish people are slower than most European to adopt digital-only banking, with fewer than 800,000 here likely to hold such accounts by 2025, a survey claims.

Digital-only banks operate without branches, offering financial services through mobile phones, tablets and other devices.

A survey of 1,200 Irish people by consumer comparison website, Finder, indicates that around 15 per cent of residents of the Republic have digital-only bank accounts.

The company found that 7 per cent more plan on opening one by 2025, which would bring the total to almost 800,000 people in the Republic.

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Elizabeth Barry, Finder's fintech editor, says that the coronavirus pandemic is accelerating the pace at which people switch from traditional lenders to digital banks.

However, Finder believes Irish people are adopting digital banking more slowly than those in other countries.

The proportion of consumers here who hold digital-only accounts is only slightly more than half that of Germany, where the figure is 28 per cent, while around 20 per cent of Spanish people use this form of banking.

"The growth of digital-only banking is also set to be much slower in Ireland, at 7 er cent, while most other countries are expecting to see double-digit growth in the next five years," said Ms Barry.