UK: consumers trust banks more than other financial institutions

According to a survey conducted online by YouGov and commissioned by UK-based digital banking provider Intelligent Environments, 24 percent of respondents admit they continue the relation with their bank because it is too much trouble to switch to another one, while 51 percent of British consumers with a current account state that an effective digital banking service (online or mobile banking) is a key factor driving their bank loyalty. The same source unveils that banks still enjoy resilient customer trust, though this will erode if they fail to keep pace with customers’ digital demands.

Research shows that 20 percent of current account customers (age 18 to 24) who had experienced frustrations with digital banking in 2012 were disappointed that current banking services are not sufficiently tailored to their individual needs. Another key frustration for 18 percent of these 18-24 year olds is the lack of consistency between digital and telephone banking services and the branch. Data points out that 20 percent of all current account holders aged 18-24 perceived supermarkets to offer a particularly well ‘integrated’ service across all channels, suggesting that the retail sector (a non-traditional entrant to the banking sector) may be best placed to attract attention from ’Generation Y’ bankers.

The survey reveals that customers still take comfort in having access to a ‘real world’ branch. Although 55 percent of current account holders use their local branch less than once a month, 40 percent have stated that ‘branch availability’ was a factor in determining their bank loyalty. This may prove to be a barrier for non-traditional challenger banks, many of whom operate an ‘online only’ model with no high-street presence.