Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Quarter of UK consumers open to ‘digital-only' bank

Rise of mobile means branchless banking an option

Article comments

A quarter of UK consumers are open to using purely digital banks that are accessible only through laptops and mobile devices, a study shows.

A survey of 3,600 current account holders by Accenture revealed that many would bank with a provider that has no branches or call centres, with 33 percent of respondents between 25-34 keen on the idea.

However, the youngest age group polled (aged between 18 and 24) were the least interested, at 22 percent.

The survey comes as banks focus more on digital services, and the first 'digital-only' bank in the UK, Atom, prepares to launch next year. It is possible that more lenders could adopt this model, with financial regulators currently considering 30 new bank applications.

The Accenture research also highlighted the continued growth in popularity of digital banking channels offered by existing providers.

More than 80 percent of respondents went online at least once a month to interact with their bank, while mobile banking use grew to 27 percent last year - up from 21 percent in 2012, and 10 percent in 2011.

The growth echoes a British Bankers' Association report published last week, which claimed that £1 billion digital transactions are now made each day in the UK.

However, despite the increasing reliance on mobile and online services, the survey showed that branch usage has in fact grown. The number of customers going to a branch at least once a month has risen to 52 percent this year, up from 45 percent in 2012, with those between 18-24 the most likely to use a branch.

"This year's survey underscores the growing complexity in how consumers want to interact with banks in the digital age," said Peter Kirk, a managing director in Accenture's Financial Services group, adding that there is evidence some customers are not satisfied by their banks' current digital offerings.

"This presents difficult questions for banks as they look to balance digital channels with costly branch networks and deliver relevant services," he said.

The report also notes that a fifth of UK customers, 21 percent, would consider using non-traditional banking providers such as online payment providers, as technology companies begin to offer financial services.

Furthermore, incumbent banks are seeing competition from retailers offering current accounts - an area Tesco Bank has recently entered, with Sainsbury's Bank and others are likely to follow in future - with 15 percent open to the prospect.

With the likelihood of heightened competition, and customer lethargy in terms of actually switching account provider, lenders need to differentiate customer service through digital technology, said Accenture.

Kirk concluded: "As banks develop their strategies for re-engaging with their customers, they will need to focus on evolving customer behaviours and digital experience, while improving their services through the use of analytics and customer loyalty."



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *