UK Consumers Resistant to Digital-Only Banks Despite Cost-of-Living Pressure

According to a recent survey by UK banking customers are still resistant to change, with one in three preferring to do all banking in person. Accenture.

A survey of over 2,400 UK adults found that 38% now have a digital-only bank account, but only 12% use it as their primary bank. A clear generational divide exists, with more than half of her 24-year-olds from 18-years-old having a digital-only account, twice as many as her 55+ age group.

On the other hand, it is clear that customers are banking more digitally and are valuing a superior digital experience via mobile apps and digital channels. tom merry Managing Director of Banking Strategy at Accenture. At the same time, there is still a sizeable portion of the population that wants human interaction. Large banks have to balance a great digital experience with a human experience when it matters.

Digital banks are in demand for Gen Z, but 3 in 5 still oppose digital banks. The most common reason for not using a digital-only bank is the desire to visit a branch or talk to staff, and 1 in 5 says she believes the digital-only bank’s data is not his security and financial stability. I am still concerned about

money management

The cost of living crisis is impacting how customers manage their money, with three-quarters of respondents agreeing it has. Nearly two-thirds of these people haven’t taken any action with their banks, but there are indications that some are taking on more debt in response to rising costs.

More than 1 in 10 respondents said they had increased their credit card debt to cope with the pressure, and 5% said they took out new loans or added lines of credit.

Cost of living pressures are forcing customers to rethink their spending and consider how to manage their finances, but two-thirds have not taken concrete action with their banks, says Merry. added Mr. Banks can play an irreplaceable role not only by offering products that bring value to their customers, but also by providing more support and guidance to those who need them.

Importance of cash

Jenny Ross, which one? The editors of Money commented that access to cash remains crucial during the cost of living crisis for the sizeable minority who use cash to pay for daily necessities and track spending.

Ross said:access to cash Banks are still very important to the sizable minority who use them to pay for essentials or track spending during a cost of living crisis, but they continue to close hundreds of branches, leaving people are finding it difficult to deposit and withdraw money.

The schemes put in place by the banking industry to protect these services, such as banking hubs, are a good starting point to fill the gaps left by the closure of physical branches, but consumers will realize the benefits. need to deploy much more quickly.

Governments should reconsider proposals to introduce a guaranteed minimum level of free access to cash.