Keywords
Internet-only banks, FinTech, digital revolution, banking sector
Abstract
This paper explores how traditional banks perceive digital-only banks and the potential impact of digital-only banks on the retail segment of the banking sector. To obtain the main goal, we conducted in-depth semi-structured interviews with managers and directors representing different traditional banks with profound insight into the bank digitalisation process. The results indicate that, for traditional banks, the development of digital-only banks does 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 banks that attract retail customers. At the same time, the limited range and scope of services provided and issues with compliance and trust translate into limited development opportunities.
Acknowledgments
Funding
The project financed within the Regional Initiative for Excellence programme of the Minister of Education and Science of Poland, years 2019-2023, grant no. 004/RID/2018/19, financing 3,000,000 PLN.
Declaration of Conflicting Interests
The author declared no potential conflicts of interest with respect to the research, authorship, and publication of the article.
Declaration About the Scope of AI Utilisation
The authors did not use an AI tool in the preparation of the article.
Recommended Citation
Schmidt-Jessa, K., & Stradomski, M. (2025). Digital-Only Banks – Retail Banks for Retail Customers Only?. Journal of Banking and Financial Economics, 2025(1), 107-124. https://doi.org/10.7172/2353-6845.jbfe.2025.1.8
First Page
107
Last Page
124
Page Count
18
Received Date
31.10.2024
Revised Date
19.01.2025
Accept Date
22.01.2025
Online Available Date
15.05.2025
DOI
10.7172/2353-6845.jbfe.2025.1.8
JEL Code
G21; G23; O33
Publisher
University of Warsaw
