UK customers are more willing to embrace Open Banking apps offered by traditional High Street banks than the offerings of digital challenger banks, according to new research.

A survey of 2,000 UK consumers by YouGov for a software analytics firm New Relic assessed appetite amongst consumers for a consolidated banking app which uses Open Banking APIs to allow customers to manage multiple financial accounts in one app.

It found that nearly three quarters (69 per cent) of customers would be willing to use a consolidated bank offered by an incumbent bank, versus 19 per cent who would be willing to use an app from a digital challenger bank, despite a perception that FinTech startups are leading the charge on the use of Open Banking technology.

The results show that trust in traditional High Street banks, when it comes to data sharing and new digital products, could provide a route for incumbents to fight back against the rise of digital challenger banks.

However, despite the opportunity for established banks to offer Open Banking-related products, the survey also showed that they would stop using any new banking app if it is frequently down for repairs and maintenance (70 per cent), if payments fail when using the app (69 per cent), or if they get frequent error messages (66 per cent).

An alternative bank which might offer more in-app services, or because the app lacked the latest technology, were much less likely to dislodge a customer (only 12 per cent for both).

When asked how often they would tolerate their mobile banking app to be down, only 23 per cent said they could cope with planned or unplanned downtime more than once a month, while 26 per cent could accept their banking app to be unavailable more than once every three months.

Manesh Tailor, director, financial services solutions for New Relic, said: “Consolidated banking apps are attractive because they offer new business opportunities, especially with younger consumers.

“While it may be surprising that traditional banks are still the preferred choice of customers for the mobile banking era, it shows the High Street giants they have a great opportunity and shouldn’t rest on their laurels.”

He also warned that one in three consumers are still open to considering consolidated banking apps from potential Big Tech market disruptors like Amazon or Google.

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