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April 16, 2019updated 01 May 2019 11:57am

Appetite for digital banking among UK consumers surges

By Briony Richter

Over the past year, digital banking solutions have become more popular among UK consumers.

Research from FIS revealed that the majority of UK banking customer interactions are now digital.

The fifth annual PACE study surveyed UK consumers on whether their banking providers are meeting their needs.

It identifies an increasing gap in customer satisfaction in favour of direct banks compared to the more established global institutions.

Furthermore, it revealed that 71% of all banking interactions are now digital or online. In addition, the majority of these are completed on a smartphone, tablet, or wearable device (47% vs. 41% in 2018).

This compares to only 6% of interactions which happen in a branch.

PACE digital banking survey

Banking through digital is becoming the most popular choice for the majority of consumers.

Executive vice president of banking & payments at FIS, Raja Gopalakrishnan, said: “It’s now second nature for many consumers who expect instant and immediate banking access, to take advantage of user-friendly apps to manage their finances. Many banks of all types are doing a fantastic job when it comes to customer experience and consumers are experimenting and getting more familiar with what is on offer.

“However, as new products come onto the market following the launch of the UK’s open banking initiative last year, awareness of the benefits has increased, and the time for and complacency among the big established banks is over. It’s particularly crucial that mobile is recognised as the most important part of banks’ customer-facing offering, to drive engagement with consumers of all ages through a secure and frictionless experience.”

PACE digital banking survey highlights

  • 59% of banked UK consumers have used mobile apps to access financial services
  • Demand for mobile banking is strongest among young millennials. 40% choosing a primary bank with a mobile banking app
  • More than a third (35%) of consumers want banks to invest in apps in order to replace plastic payment cards in the coming decade
  • In addition, almost half (47%) want banks to invest in digital security technologies like facial recognition, instead of passwords

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