Digital-only banks are coming
A new study finds that as many as a quarter of people in the UK would consider using a digital-only bank – with no branches or call centres, only accessible via laptops and mobile devices.
The survey, conducted by management consulting firm, Accenture, found that 33% of respondents aged 25 to 34 are most keen on a branchless bank, while the youngest group of bank customers – those aged 18 to 24 – are the least receptive, at 22%.
Based on interviews with more than 3,600 UK current account holders, the survey revealed that 80% of customers went online at least once a month to interact with their banks, while monthly mobile banking usage has risen to 27% of customers compared with 21% in 2012 and 10% in 2011.
However, the survey also points to a rise in customers using branches. According to the survey, the number of customers going into a branch at least once a month has risen from 45% in 2012 to 52% in 2014, with the most pronounced increase among customers aged 18 to 24.
Fifty-four percent of the youngest group, said they visit their bank branch each month compared to 39% in 2012.
The survey found that a fifth (21%) of respondents would consider banking with non-bank organisations, such as an online payment-provider or post office, and 15% would consider banking with retailers, if they were to offer current account services.
“To grow their business and increase market share, banks need to differentiate themselves because customers feel that most banking products and services are more or less the same, and there’s not much point in switching,” said Peter Kirk, a managing director in Accenture’s Financial Services group.
“This is becoming increasingly important in the digital world as customers are in the driving seat, and they expect the same level of convenience, simplicity and speed from banks to which they have become accustomed from many other service providers they use every day.”
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