Digital disruption in UK banking sector still moving slowly

    Bank of England text on a UK Fifty pounds note

    A survey by YouGov and ACI Worldwide has shown the much hyped ‘digital disruption’ in the UK banking sector may be taking place at a much slower pace than reports and commentators have suggested.

    The research, a survey of 2000 UK adults, suggests that the majority of account holders in the UK are in fact loyal to their banks, but will quickly adopt new services that are convenient and easy to use.

    The research reveals that the overwhelming majority of current account holders in the UK – 88%- have no intention of switching bank accounts within the next 12 months. 82% of consumers never use mobile payment services such as PayM or PingIT during an average month, and a staggering 59% never use mobile banking within this same timeframe. Further, 78% of those surveyed stated that it is unlikely they would use banking services offered by the likes of Google, Apple or Facebook—household names in today’s ‘digital age.’

    “The results appear to fly in the face of the popular ‘banking disruption theory’ and suggest that the majority of consumers are in fact loyal to their banks, that they don’t really like change and are staying put.” said Dean Wallace, Global Business Lead, Mobile Payments, ACI Worldwide. “This could be because e-services offered by most UK retail banks today are simply not compelling or different enough for the majority of customers to change bank account providers.”

    However, the results also suggest that change is happening, albeit more slowly than previously suggested. According to the survey, 50 percent of respondents are now regularly using third-party payment providers such as PayPal (i.e. once a month), thus moving away from using traditional ‘bank-endorsed’ methods of payments. 76 percent of current account holders online are using Internet banking at least once a month and 29 percent of UK consumers are now paying regularly via contactless cards, with Londoners leading the charge; 56 percent of respondents said they are using contactless payment methods every month.

    Tags : BankingDigital DisruptionFinTech