The much hyped ‘digital disruption’ in the UK banking sector appears to be a non-event for the majority of consumers, who remain steadfastly unimpressed by noisy new entrants and new-fangled tech.
A YouGov and ACI Worldwide online survey of more than 2000 UK adults found that the overwhelming majority of current account holders in the UK (88%) have no intention of switching bank accounts within the next 12 months. Eighty-two percent percent 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 percent 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.’
Dean Wallace, global business lead, mobile payments, ACI Worldwide comments: “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.”
However, the results also suggest that a smidgen of change is evident with long-endorsed practices such as the use of PayPal and Internet banking gradually achieving mass-market acceptance. Equally, technologies which can demonstrably improve the customer experience, such as the use of contactless cards to tap and pay at the checkout, are showing faster uptake.
According to the data, 29% percent of UK consumers are now paying regularly via contactless cards, with Londoners leading the charge; 56% of respondents said they are using contactless payment methods every month. In the first half of 2015, a staggering £2.5 billion was made through contactless payments, according to the UK Cards Association. And this is despite the fact that two-thirds of UK merchant terminals still do no accept contactless.
Says Wallace: "In terms of providing easily accessible and flexible services, banks need to focus on those opportunities that exist and grasp them quickly. The history of adoption shows that there is likely to be a ‘tipping point,’ especially for younger customers who will follow where their peers lead.”