Mobile banking an essential service in the UK, but digital-only banks struggle with awareness

Andy Boxall | March 13, 2017

App Business

mobile bank apps pwc

In a survey of UK banking customers, it’s shown that 39% of 18 to 24-year olds consider mobile banking facilities an essential service. For those between 25 and 44, the figure is 66%.  However, only 13% of those over 55 feel the same way.

The research comes from Price Waterhouse Coopers (PwC) and is part of its “Who Are You Calling A Challenger” paper, looking at innovation in the UK banking sector.

While mobile banking services are becoming more commonplace, and are seen as desirable for a large percentage of customers, digital-only banks that rely entirely on online services including mobile, are still in their infancy.

Digital-only banks struggle with awareness

digital banks pwc

A massive 91% of those surveyed were not even aware of digital-only banks, leaving only 9% with knowledge of the industry. Furthermore, only 9% will consider using a digital-only bank over the coming three years.

While strong mobile services are a huge part of the digital-only bank service, the report also notes:

“Digital-only banks must prove their offer is sophisticated enough for customers to start using their products. Critically, the proposition must be more than a better app, as our survey revealed that only 4% of customers who changed banking arrangements in the last three years did so because their previous provider’s mobile app didn’t meet their needs.”

The complete PwC report can be found here.

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