The findings offer a look into the evolving banking preferences in the UK, concluding that while digital banking is on the rise and increasing in adoption, the need for physical branches still exists.
As traditional bank branches become less essential for everyday banking, 23% of people in London have already moved to a fully digital bank. An additional 32% are open to switching to digital banks, claiming that they see advantages in doing so, such as greater convenience and lower fees. 21% remain attached to traditional banking due to security concerns and familiarity.
When it comes to physical visits to branches, 23% of London residents haven’t visited a bank branch in over a year, 19% have infrequent visits, and 23% claimed they have visited a branch in the last six months for special services such as resolving issues or seeking advice. Meanwhile, 28% have visited within the last month for routine transactions such as deposits or withdrawals, and 9% of people utilising ATMs regularly have never stepped into a bank branch.
As fewer individuals visit bank branches due to inconvenience, 48% noticed changes in the solutions available at centres near them. 33% of Londoners feel that their banking experience was impacted by branches closing locally, while 14% said they noticed changes, but they don’t impact them personally, as they do all their banking online.
London’s citizens seem to embrace digital banking faster, in comparison to several northern cities. 50% of residents in York, Bradford, and Sunderland would not consider switching from traditional to digital banking. Across the whole of the UK, attitudes towards the shift to digital banking vary based on age groups. Over a quarter of those aged between 18 and 24 have adopted a fully digital bank, with another 29% considering the switch, drawn in by its convenience, flexibility, and cost-effectiveness. Similarly, 27% of those aged between 25 and 34 are already using a digital-only bank, and over a third are embracing the transition.
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