Breaking Stories

Why UK Customers Are Moving to Digital Banks

Consumers in the United Kingdom are interested in digital banking.

In the last quarter of last year, almost 250,000 U.K. banking customers switched their accounts through the Current Account Switch Service, including approximately 95,000 just in October, the highest-volume month for account switching in that country in almost two years.

Digital-first financial services providers, including companies like Starling Bank, Monzo Bank, Santander and Virgin Money, made some of the most substantial gains in 2021.

In past years, most consumers made account switches for financial reasons, such as cash incentives. Last year was a different story, as nonfinancial and service-related reasons surpassed cash-related motivations in Q4 2021.

A little more than half — 51% — of account switchers who responded to the survey said they were looking for better online banking facilities. Meanwhile, better mobile and online banking drove 41% of consumers to switch, while 38% said they were looking for better customer service.

Moreover, digital-first banks led in customer satisfaction among U.K. banking customers.

One survey showed Starling Bank and Monzo Bank at the head of the pack when it came to customer service, at 85% and 83%, respectively.

At the same time, legacy financial institution (FI) Royal Bank of Scotland was at the bottom of the customer satisfaction ratings at 56%.

Only 13% of survey participants said they do not use a smartphone for banking, with 5% saying they use mobile banking less than once per month. Almost half the consumers who avoid mobile banking still prefer to do their banking through their FIs’ websites. In addition, mobile app accessibility problems are a factor for 18% of those who said they rarely use mobile banking.

To find out more about what’s happening in the world of digital banking — including the role ATMs still have to play in all this — download the Digital-First Banking Tracker, a PYMNTS and NCR collaboration.

What is your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *