According to the research, consumers remain unconvinced that pure digital banks offer significant benefits over traditional rivals. Moreover, despite the current focus on online and mobile banking, branches remain an essential service channel. More than half of current accounts opened between 2013 and 2016 were arranged in-branch, although online is growing in significance as an acquisition channel.
The top six providers have a 70% share of the UK current account market, and consumers choose their providers on the basis of reputation, branch location, and personal recommendation. Satisfaction levels are higher for digital channels than for human channels: 60% of users are very satisfied with online banking, compared to just 37% for telephone banking.
The UK has a mature and highly developed retail banking sector, with a handful of large providers dominating the industry. However, a growing number of entrants are seeking to challenge the incumbents. The growth of digital channels will also affect distribution and servicing.
Among participant banks that took part in the research we name: Starling Bank, Monzo, Tandem, Barclays, Lloyds Bank, HSBC, Santander.
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