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About What is phygital?

It’s easy to think of physical and digital banking as being in competition. They don’t have to be. They work best in collaboration. Because customers want both.

Among today’s consumers, traditional banks retain high share of mind, with branch networks, outdoor signage, and friendly faces inside. But that’s expensive. Online-only “neobanks” have lower costs of service – but lower brand recognition as a result.

The good news: somewhere between physical-only and online-only, there’s a sweet spot where they combine to offer the best of both worlds. Such a strategy is called phygital.

The catch? Phygital service must be “omnichannel” – a seamless, consistent experience as the customer switches between branch visit and phone app, laptop and letterbox.

The right strategy leverages the brand value of physical objects like payment cards into the digital realm of websites and email, using data for insights and action. On these web pages, you’ll see how.

80 %
of neobanks see having a physical presence too as important
Source: GlobalData Banking Survey p10
98 %
of all banks see leveraging data as a business opportunity
Source: GlobalData Banking Survey p8
Illustration of a woman paying with a payment card
4 in 10
Less than half of neobank customers use online for all their banking needs
40 %
of neobanks see integrating phygital as a “major challenge”
Source: GlobalData Banking Survey p10
Illustration of woman sitting on armchair at computer