Almost 30% of UK adults have considered changing banks in the last 12 months, with a better digital experience elsewhere cited as a key concern, according to new figures.
The poll quizzed adults across the UK on the customer experience provided by their bank.
Among those that have considered changing banks, better interest rates/services and attractive new joiner incentives elsewhere were the leading drivers, followed by feeling they could get a better digital customer experience elsewhere or a better in-branch customer experience among other banks.
Growing competition from digital banks
Of those who have a ‘traditional’ bank account with a high street bank such as NatWest or Barclays, one in five also have a digital bank account (with the likes of Monzo, Starling, Revolut, etc.) – a figure which rises to over half under 35s. Nearly one in five believe their traditional bank feels ‘a bit old’ and they’re looking for an improved digital performance. This increases to over a quarter of those aged under 35 suggesting that more young people are looking for their bank to modernise its approach.
Tech over branches?
One in ten Brits haven’t visited their bank’s branch for over a year, yet over half of over 55s have used their branch services at least once in the last month. A fifth would even be happy if their bank closed its branches if it resulted in an improved mobile app / online banking experience. This figure rises to over a third among those aged 18-24.
“New account holders won’t hold the same loyalty to their bank as previous generations have. New players entering the market have overhauled expectations and set the new standard around the digital banking experience. Customers are looking for more than better products when choosing their next provider,” said Derek Thompson, VP of EMEA at Dell Boomi.
“It’s therefore critical that banks assess their current IT ecosystem, ensuring they’re not held back by their legacy infrastructure and can quickly unite their systems, deploying more agile technology to transform customer experience,” he added.
Further investment could also be required to improve the robustness of a bank’s IT systems – with all respondents experiencing IT outages with their current bank in the last five months on average.