Despite the rise of digital banking, a recent survey conducted by Accenture reveals that one-third of UK banking clients still prefer conducting all banking in person.
According to a recent Accenture survey, UK banking clients are still resistant to change, with one-third preferring to conduct all of their banking in person.
Only 12% of those who have digital-only bank accounts use them as their primary bank, according to a survey of more than 2,400 UK adults. There is a pronounced generation gap; for example, twice as many 18 to 24 year olds have digital-only accounts than people 55 and older.
According to Tom Merry, managing director of banking strategy at Accenture, “on the one hand, it’s clear to see that customers continue to do more banking digitally and that they value great digital experiences via mobile apps and digital channels.” “At the same time, a sizeable portion of the population still values interpersonal contact. The major banks must strike a balance between great digital experiences and important human interactions.
Despite Gen Z’s preference for digital banks, 3 out of 5 consumers still reject them. The desire to visit a branch or interact with a staff member was the most common justification for not utilizing a digital-only bank, but roughly one in five respondents were still concerned about the protection of their personal information and the viability of such institutions.
Managing finances
With 75% of respondents saying it had, the cost-of-living crisis has had an influence on how customers manage their finances. There are indications that some of those people are taking on more debt in reaction to increased costs, even though roughly two-thirds of them had not taken any action with their banks.
In order to deal with the pinch, more than one in ten respondents claimed they had increased their credit card debt, while 5% said they had taken out a new loan or supplementary line of credit.
While cost of living concerns are causing customers to reevaluate their spending and how they handle their finances, two thirds of them haven’t taken any concrete action with their bank, according to Merry. By offering consumers goods that are valuable as well as greater help and guidance to those who may need it, banks can play a crucial role.
The value of money
According to Jenny Ross, money editor for Which?, having access to cash is still crucial for a sizeable portion of people who use it to pay for necessities and maintain tabs on their spending during the current economic crisis.
“Access to cash remains hugely important for a significant minority who use it to pay for daily necessities and track their spending during the cost of living crisis, but banks continue to close hundreds of branches, making it harder for people to deposit and withdraw their money,” said Ross.
“Banking hubs are a solid start in filling the holes left by closing physical branches, but they must be implemented much more swiftly if consumers are to see their benefits. These are only a few of the schemes the banking sector has undertaken to protect these services.
The government needs to take another look at ideas for introducing basic guarantees of free access to cash.
