Consumers in the UK are interested in digital banking services.
In the last quarter of last year, nearly 250,000 UK banking customers switched accounts via the current account switching service, including around 95,000 in October alone, the peak month for switching. account in this country in nearly two years.
Digitally-focused financial service providers, including companies like Starling Bank, Monzo Bank, Santander and Virgin Money, made some of the most substantial gains in 2021.
In recent years, most consumers have switched accounts for financial reasons, such as cash incentives. Last year was a different story, as non-financial and service-related reasons overtook money-related motivations in Q4 2021.
Just over 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.
Additionally, digitally-focused banks lead in customer satisfaction among UK banking customers.
A survey showed that Starling Bank and Monzo Bank led the pack in customer service with 85% and 83% respectively.
At the same time, the former financial institution (FI) Royal Bank of Scotland was at the bottom of the customer satisfaction rankings at 56%.
Only 13% of survey participants said they do not use a smartphone for banking, and 5% said they use mobile banking less than once a month. Nearly half of consumers who avoid mobile banking still prefer to bank through their FI’s websites. Additionally, mobile app accessibility issues are a factor for 18% of those who say they rarely use mobile banking.
To learn more about what’s happening in the world of digital banking — including the role ATMs have yet to play in it all — download the Digital-First Banking Tracker, a PYMNTS and NCR collaboration.