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
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.”