A new survey shows that 28% of recent bank switchers would recommend a Credit Union for banking needs, while 21% would recommend a FinTech.
The survey from Peopl Insurance also shows that 30% of adults who have switched accounts in the last five years would recommend AIB, Bank of Ireland or Permanent TSB to a friend or colleague.
The results come as Ulster Bank and KBC Bank Ireland continue their exit from the Irish market.
The survey also reveals that people over 55 are most likely to opt for a traditional bank (46%), compared to just 38% of those in the 18-24 bracket.
It also shows that higher earners - those earning more than €80,000 - are most likely to recommend a traditional bank (15%) and least likely to recommend a CU (12%).
Paul Walsh, CEO of Peopl Insurance, said the survey shows that people no longer turn to the more traditional banking offerings, and are instead favouring alternative options.
"Credit unions and Fin Tech providers could now make a play to become a very real challenge to the dominance of our traditional banking model," he said,
Mr Walsh said that in the last few years people have become disillusioned with the banks, not least due to a spate of branch closures, a culling of cash-services and AIB's recent misstep around its efforts to force more cashless banking into people's lives.
"All of this has impacted and continues to negatively impact public perception. The survey finds that just four in 10 would recommend opening an account in a traditional bank, and that endorsement drops even further to 30% for those respondents who have switched provider in the last five years, indicating that for many, their experiences were poor," he added.
He also said that Credit Unions are seen as a credible alternative to banks by such a significant cohort of people.
"This is perhaps reflective of just how strongly credit unions have come out in the last number of years, with many branches joining forces and scaling up to provide a modern and dynamic service to local customer," he said.
But he also noted that the survey finds that An Post does not have the same draw as a banking alternative, with just 6% saying they would recommend banking here.
