Ireland third biggest user of digital bank accounts globally

Ireland has the third most people with a digital bank account per capita in the world, according to a new report.

The report, by global financial data analyst Finder, found that 22 per cent of Irish internet users currently have a “neobank account”, which is an online-only or digital bank account. They operate without branches, offering financial services through mobile phones, tablets and other devices.

The vast majority of Irish users are likely to be with Revolut, which said in June that it now has close to two million customers in Ireland and that its user base has doubled over the past two years.

While the number of Irish users was down from 25 per cent in 2021, the report established that the number is expected to grow by 6 per in 2023 and a further 6 per cent by 2027. That means adoption could hit 28 per cent by next year and 34 per cent within five years.

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Ireland was one of only four countries to see a drop in the number of adults who had a digital-only bank account from last year’s survey. The others were Malaysia (down 7 percentage points); the Philippines (down 6 points); and Germany (down 5 points).

Brazil led the way for digital bankers in 2022 with 43 per cent, followed by India (26 per cent), Ireland (22 per cent), Singapore (21 per cent), Hong Kong (20 per cent), United Arab Emirates (19 per cent), Mexico (17 per cent), and Spain (17 per cent).

At the other end of the spectrum, the United States has the smallest percentage of adults with a digital-only bank account (8 per cent), followed by both the Philippines and Malaysia at 13 per cent, and Portugal and Germany with 14 per cent.

Finder’s global fintech editor Elizabeth Barry said digital bank accounts in Ireland are still more prevalent than pre-pandemic.

“Back in early 2020, just 15 per cent of Irish adults had a digital-only bank account,” she said. “Adoption grew rapidly to 25 per cent over 2021 and while there’s been a slight drop since then, uptake is still higher than pre-pandemic levels.

“It’s possible we’ll see adoption grow again over the next few years, as roughly an additional 12 per cent of Irish adults plan to open an account by 2027.”

She added that men and young adults are driving the trend. “Men are currently more likely to hold a neobank account than women in Ireland,” she said. “A quarter of men are neobankers compared to 19 per cent of women.

“In terms of age, those aged 25-33 are most likely to hold an account at 34 per cent, compared to just 17 per cent of those aged 55-64 and 12 per cent of those 65 and above.”