A new wave of consumer preference is sweeping through the UK banking sector, with a recent FICO study revealing that mobile banking apps are now more critical to customers than traditional bank branches.
In a stark departure from the past, a striking 75% of surveyed consumers rank their banking app as the most important or second most important factor when choosing a primary bank account. This is a significant leap compared to just 33% who cite the need for a nearby branch.
The findings come amidst ongoing headlines about branch closures, which have raised concerns about access to essential banking services. Despite this, the vast majority (81%) of consumers still prefer traditional banks, while only 12% have shifted to digital-only options. This signals a crucial moment for banks to understand and adapt to the shift in consumer preferences.
Apps rule, chatbots drool
FICO’s 2024 Bank Customer Experience Survey reveals that while apps have become the go-to choice for the majority, customers still demand access to human interaction. A staggering 80% of respondents emphasised the importance of being able to talk to real bank staff, citing the necessity for banks to strike a balance between digital solutions and personalised service. This expectation is especially vital during instances of technical outages, as evidenced by recent disruptions that left many customers frustrated and without support.
Different demographics have different banking preferences, with younger consumers placing a higher premium on app quality. Over half of those aged 18 to 24 consider a good banking app a top priority, while only 24% of those over 65 share this sentiment. However, even among younger users, the desire for human contact remains strong, with 51% of respondents aged 18-24 rating the importance of human interaction a perfect 5 out of 5.
The survey shows that while chatbots are gaining traction, only 35% of consumers find them appealing, indicating a clear preference for real human interaction.
Mark Whale, a financial services partner at FICO, said: “A strategic balance between apps and human interactions is critical. Used intelligently, AI can prove invaluable in creating better customer interactions as customers move across to apps. Using analytics to determine the best channel for each individual customer will help brands be more strategic in all areas of communication with their customers, and ensure they foster positive customer experiences and lasting relationships.”