Over 50 Percent Of UK Customers Find Banking Digital Experiences Lacking

New research reveals consumer dissatisfaction and the key areas of digital transformation banks need to bank on to deliver on customer needs

London, UK, Monday, 26th April 2021 – Over 50% of customers in the UK find their bank’s digital experience lacking, according to new research launching today from digital transformation agency Equator.

The agency polled 1,000 UK consumers to discover how banks are being perceived in the post-digital world.

In every age group, over half of those surveyed found it to be a frustrating experience. Young demographics were the most dissatisfied, with 78% of Gen Y and 83% of Gen Z finding their bank’s digital experience lackluster.

Gen X and Baby Boomers were not far behind either, with 69% and 57% respectively experiencing some form of frustration. This demonstrates that banks still have a long way to go to meet the needs of even their most long-term, historically loyal customers.

The research also explores the rise of big tech in FS and how the likes of Apple, Amazon, Facebook, Google, PayPal and Uber are encroaching on the turf of well-established banking brands through the launch of new products, such as the Apple credit card, the Amazon One palm-print based payment system, Facebook’s cryptocurrency Libra and Google’s Plex platform. But it’s not all bad news, it also lifts the lid on what banks need to do to fight back.

The report reveals that banks are lagging in CX, with architectures currently prioritising systems-oriented design and platforms built around the limitations and procedures of the bank rather than the needs of the customer. They are sitting on poor customer reputation statistics, outdated hardware and an expensive legacy of branches and staff.

Nevertheless, they have an opportunity to change their businesses from the top down.

The report identifies four key areas of digital transformation that banks need to invest in to really deliver on customers’ needs:

  • Improving functionality for better digital CX
  • Connecting services and products for a deeper relationship
  • Processing automation for more efficient, faster processing
  • AI for next best actions, personalisation and beyond

A glimmer of hope, however, as almost three-quarters (70%) of large banks surveyed said they are implementing AI in some form. And they come equipped with deep customer relationships to truly offer meaningful insights.

Garry Hamilton, Group Chief Growth Officer, Equator said: “Digital transformation cannot be led by an IT team alone – it is a cultural shift in an organisation, a new way of thinking and doing and it must start from the very top of the business. As our survey showed frustration with digital experiences in banking is widespread. Change therefore must be led with key objectives based on the customers’ benefits, not software features

Delivering a strong customer experience is a critical requirement for banks and building societies. There are many opportunities for them to make their own super apps, invest in better CX and offer greater personalisation and faster, more efficient processing. Although such changes may seem daunting, one thing is certain – doing nothing is not an option.”

The report is available on the Equator website.