Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 45 Survey Findings Virtual banks do not have minimum deposit balance requirements and no fees are charged on low account balances. Most respondents either agree or are indifferent that virtual banks and insurers have lower transaction fees. This perception would create an expectation on product pricing of virtual banks and insurers as low cost financial service providers. Virtual banks and insurers have lower transaction fees Virtual banks and insurers rely on automated, end-to-end digital platforms, and other technologies to reduce human labor and operational costs. Without the costs of maintaining physical branches, it is generally believed that they can offer products with lower fees to customers. To better understand the respondents’ views, we asked if virtual banks and insurers offer lower transaction fees. Of the respondents, 48.6% agree or totally agree that virtual banks and insurers have a price advantage, compared to 16.9% that disagree or totally disagree. 34.5% remain indifferent. Exhibit 19 Virtual banks and insurers have lower transaction fees [1 - Totally Disagree ...... 5 - Totally Agree]