New opinion data gathered by Glassbox has found that banking customers increasingly prefer a seamless online experience to the personal touch of traditional banking. The survey – which took place between July and August 2021 – focused on both sides of the Atlantic, with 2,000 respondents from both the United Kingdom and the United States.
While the study did reveal several intriguing differences between the way Brits and Americans like to bank, what it did reveal is an increased shift towards a digital landscape on both sides of the pond.
Jeremy Cole Red Rose co-founder has worked in the financial services industry for many years, with a focus on digital and e-cash transfer solutions for the humanitarian sector. He recently co-founded Fintech start-up Bixie – with Jerry Cole serving as Director – to empower women financially.
You can learn more about digital banking by taking a look at the PDF attachment to this post.
Importance of Human Interaction
While customers in both the UK and the US are increasingly turning to online services and mobile apps to help them manage their finances, this does not mean that human interaction is necessarily decreasing in importance.
In the UK, 51% of respondents to the Glassbox survey stated that they placed importance on human interactions when banking online, including access to telephone support and live chat. 43% of Americans agreed with this.
Most customers, while shifting towards a digital banking experience for the convenience it offers, are still seeking the same level of personal experience they have come to expect from their high street bank teller. Banks need to now look at business models created by online giants such as Amazon to learn how to personalise the online experience and draw in more customers.
Digital banks are ideally placed to collect and analyse behavioural data from their customers that can be used to create a streamlined, personal experience and respond quickly to changing demand.
The embedded short video explains briefly what a high street bank is.
Convenience and Accessibility
One of the biggest draws of digital banking as opposed to traditional banking is convenience. Customers in the modern world – and especially in the time of the COVID-19 pandemic – want to be assured that their money is working for them.
35% of respondents listed accessibility of online banking as a primary reason why they stayed with their current bank. 79% stated a preference for digital management of their finances and 51% said they used online banking at least once a week.
The infographic attachment looks at some of the biggest digital banks in the world in 2022.