Digital Experience as Determining Factor of Bank Choice

A new research into post-pandemic digital banking trends in the UK revealed that the quality of online experience is a determining factor when it comes to deciding who people bank with. According to the survey, commissioned by digital agency MagiClick and conducted by YouGov last month, 81% of adults make their choice based on online experience.

Results collected from 2,087 adults from the UK showed notable differences in the importance of online experience between different age groups. 46% of those in the 55+ age group stated that online experience is “very important”, while only 26% of 18-24 year olds declared the same.

The findings also concluded that all digital banking services had grown since the start of the pandemic, with mobile banking apps gaining the most popularity. 66% of those who have used digital banking services since the pandemic began stated they have used mobile banking apps more often. This growth is led by the under 35’s, with 85% of 18-24 year olds and 79% of 25 to 34 year olds, using mobile banking apps more often.

Online banking also showed significant growth. 50% of those who have used digital banking services more since the pandemic began stated they have used online web banking more often, in particular the 55+ age group (60% using the service more often).

Finally, the findings also highlighted that wider adoption of making payments via smartphones and smartwatches. Among those who used digital banking services more since the pandemic, 35% of 18-24 year olds increased their usage, followed by 32% of 25-34 year olds and 31% of 35-44 year olds. The 55+ age group remained reluctant to embrace making payments via smart devices, as only 16% of this age group increased their usage.

Mark Lusted, MagiClick UK CEO, said: “This research clearly shows that the events of the past 18 months have accelerated the adoption of digital banking services by consumers across all age ranges.

The quality and ease of use of the digital experience is clearly now of high importance to a large majority of users when choosing who to bank with and, interestingly, this was of highest importance to the over 55s. In an increasingly competitive landscape, with an array of new digital-only challenger banks entering the market, incumbent banks should take note.

The research also showed that the often-predicted demise of web-based banking services in favour of mobile banking apps has been overstated and that customers are choosing to use both facilities more, with little to separate them in terms of how much their usage has increased.

It also shows that banks are yet to fully realise the benefits and opportunities that website chat and automated chatbot facilities can provide to their overall service proposition, with those services seeing the smallest increases in usage during this period.”