Digital-only banks will struggle with UK banking customers when they launch this year, with only one in eight (13%) consumers claiming that they plan to switch to an account with a digital-only provider this year. Several providers are set to launch services in the UK this year, including Atom and Starling.
Additionally, only 14% say they would trust a digital-only bank more than a traditional
bank, but 16% believe digital-only banks will have fewer security problems than their traditional counterparts.
The research also showed that more than half (52%) of UK banking customers don’t like the idea of not being able to speak to someone in person if they have a problem, along with 44% claiming that they wouldn’t switch because in branch services are important to them.
The online poll of 2,000 Brits, conducted by Intelligent Environments, reveals that whilst more than a third of those surveyed believe digital-only banks will soon become the norm. 34% said that within five years they expect more people to have an account with a digital-only bank than a traditional provider.
“Digital-only banks do not spell the end for traditional branches. As our research shows, many of the UK’s banking customers still like the personal touch,” says David Webber, managing director of Intelligent Environments.
“In-branch services are still highly valued by a significant proportion of the population, while others have voiced concerns about not being able to speak to a customer service representative in person if they had a problem. In fact, traditional providers have a fantastic opportunity now to improve their digital and mobile services, and to focus on providing a superior in-branch experience for customers.