New report by Wise finds 2/3 Irish people say banking sector lacks competition

Wise, the global technology company building the best way to move money around, has released ‘The State of Irish Banking Report’, revealing that almost a fifth (19%) of Irish people do not believe Irish banks offer adequate digital services in a sector viewed as uncompetitive.

The research which saw Censuswide poll 1,000 general people in Ireland (16+) reveals a gap between the services traditional banks offer and what customers want. With slow transfers, legacy technology, and high foreign transaction fees, 66% believe the Irish banking sector lacks competition and only 26% prefer to use traditional banking services.

Irish people are turning to tech. 43% Irish now use a combination of app-based and traditional banking methods, showing that traditional offerings alone are not sufficient for the everyday spender and  banks must improve their existing digital technology to meet expectations.

With major banks having recently left Ireland, it’s surprising that 50% of people would not know what banking solution to switch to should their bank close. What’s more, a staggering half (53%) found the process of opening a new bank account in Ireland difficult, likely an important factor in so many choosing to bank digitally.

The good news for traditional Irish banks is that they’re still trusted by 51% of Irish people. Perhaps, then, the solution is for these banks to work with young fintech providers so that they can offer services their loyal customers expect.

Roisin Levine, Head of UK & Europe Partnerships at Wise says:

“Legacy banks continue to be the top trusted choice for the Irish consumer. However, the majority of Irish people feel that the sector lacks competition, and that there’s room for services to improve. Irish people still trust traditional banks – but they’re open to fintechs, too. 

“Irish banking can be improved if the two work together. By collaborating, fintechs can bring innovation to banks’ scale – with Irish people being the winners. At Wise, we built Wise Platform to do just this, and now we have more than 70 partners worldwide – including several major banks. We want to work with the Irish banking sector, to give people the banking services they deserve.”

In particular, Irish people are fed up with legacy banks’ sky-high fees for spending money abroad, with 87% saying charges to transfer funds and credit card fees are excessive. Despite this, only 28% avoid using traditional Irish banks completely when traveling overseas due to their poor service. These customers may soon head elsewhere, however, as the sector is being disrupted by the likes of Wise.

Today, Wise has more 100,000 customers in Ireland, and more than 16 million worldwide, who gain from fast, transparent, convenient and affordable cross-currency services. Wise Platform, its partnership offer for banks and financial institutions, enables partners to integrate Wise into their app. Partners include Shinhan Bank, Bank Mandiri and N26.

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