According to a report released on Friday, more than two-thirds of Indians surveyed by a global consultancy are willing to switch to a digital lender only for their banking needs. Nearly 4,000 respondents were surveyed McKinsey As part of a global report, which comes at a time when digitization is on the rise and many ‘neo-banks’ are emerging.

“More than 70 percent of the consumers surveyed are willing to switch to a direct bank (or virtual bank),” the survey said.

It may be noted that in the past, banks have said that they will need a physical network, but the work that takes place in a branch will change a lot.

The consultancy said that low-cost digital-only banks and robo-advisors could present a major challenge to existing banks.

The survey, which included respondents in Tier-I and Tier-II cities with savings accounts, showed a desire for digital forms of banking, with 91 percent saying they use it digital banking at least once a month.

Half of those surveyed said they use fintech/e-wallet services.

According to the report, the majority of consumers surveyed were digitally enabled with 31 per cent ‘digital first’ and 67 per cent multi-channel.

It added that the digital behavior of ‘digital first’ customers is relatively higher at 36 per cent for the younger age group, compared to 31 per cent overall.