UK consumers ‘switching to digital-only banking’

Digital-only banking is growing in popularity, with 53 per cent of Brits either already using or willing to move to an online or mobile bank, new research has found.

The survey of more than 2,000 consumers, by data management firm Relay42, found that 27 per cent had moved to digital services already, while 26 per cent were considering the shift.

Reasons for switching included receiving a better online experience and functionality (58 per cent), more attractive finance rates or fees (29 per cent) and better quality of service (28 per cent). Just 13 per cent of respondents said they were not interested in exploring new technologies for personal money management.

More than half (56 per cent) of respondents said they would remain loyal to their banks if they were sent customised offers based on their personal interests and behaviours. However, 41 per cent stated that they did not know how their data was being used by banks, while 29 per cent expressed concerns regarding how their data was being used.

Julius Abensur, industry head of finance at Relay42, said: “The banking sector is undergoing significant change in terms of shifting customer demands and expectations, as well as factors such as legislation and regulation.

“Customers are on the precipice of embracing future technology and new products, which means their existing banks need to keep pace with demands and innovation to ensure customer loyalty and competitiveness. Very often, the solution lies in orchestrating technology to create a relevant online experience and deliver personalised offers and service quality.

“Banks can’t afford to be complacent and must engage with their existing customers, streamline their journey and ensure complete relevance and personalisation on every touch point along the way,” he added. “Financial institutions need to focus on the customer experience and build that loyalty in order to ensure their future success.”

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