More Than Half of Consumers Moving Away from Traditional Banking
Digital banking is growing in popularity with 53% of consumers using or willing to move to an online or mobile only bank — 27% have moved already, while 26% are considering the switch. This is according to research commissioned by Relay42. The reasons for this shift included receiving a better online experience and functionality (58%), […]
Digital banking is growing in popularity with 53% of consumers using or willing to move to an online or mobile only bank — 27% have moved already, while 26% are considering the switch. This is according to research commissioned by Relay42.
The reasons for this shift included receiving a better online experience and functionality (58%), more attractive finance rates or fees (29%) and better quality of service (28%). In addition, just 13% of respondents said they weren’t interested in exploring new technologies to help them manage their money.
“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” says Julius Abensur, industry head: finance, Relay42.
More than half (56%) of respondents said they would actually remain loyal to their banks if they were sent customised offers based on their personal interests and behaviours. While this approach is reliant on data, this presents another operational and regulatory challenge as 41% stated they didn’t know how their data was being used by banks, while 29% expressed concerns regarding how it was being used.
“The appetite that consumers are showing for online or mobile only banking further demonstrates that convenience is shaping customer experience, which actually strengthens the relationship banks have with their customers.”
However, the research showed that 69% of respondents would change banks given the right motivation. Considering that 26% would change to digital-only banking, there is a definite desire for more convenience from customers.
“This openness for new services and offerings suggests they won’t remain loyal to one bank for very long,” says Abensur. “As a result, 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. Financial institutions need to focus on the customer experience and build that loyalty in order to ensure their future success.”
The research, conducted by Censuswide, independent survey consultants, was aimed at understanding consumer attitudes towards traditional banking, the role of technology in its future, and the idea of customer loyalty. 2,019 people across the UK participated in online interviews in September and October 2017.
For the full findings of the research, download the report here.