Digital Only Banks May Struggle Says UK Poll

A new survey of 2,000 consumers in the UK by Intelligent Environments has found that digital only banks may struggle to gain traction given that barely one-in-eight respondents plan to open an account with a challenger bank. According to the research, 60% of respondents say that mobile and digital banking services are very important to them but believe that established banks will be able to provide superior service through direct channels like branches versus the digital only experience.

The research also found that more than half (52%) of UK banking customers don’t like the idea of not being able to speak to someone in person if they have a problem with the research also showing that 44% of respondents claiming that they wouldn’t switch because in branch services are important to them, highlighting the importance of the human touch in the banking-customer relationship.

Commenting on the research, David Webber, managing director of Intelligent Environments said,

“As our research shows, many of the UK’s banking customers still like the personal touch. Traditional providers have a fantastic opportunity now to improve their digital and mobile services, and to focus on providing a superior in-branch experience for customers.”

With much anticipated digital only bank launches this year with Starling and Atom Bank, the concept of digital only banking and payment services is growing in popularity within the industry but as surveys have shown they face an uphill struggle among consumers to prove they are a safe, convenient and a better option than the leading established bank

Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at
Mercator Advisory Group

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