More than half of all UK consumers have at least one bank account they no longer use, but have not yet closed, as many open new accounts with challenger banks because they offer enticing personalised features.

The research, commissioned by Crealogix and undertaken by Censuswide among 2,000 people aged 18 to 65 who currently have a bank account, found that 57 per cent of respondents admitted to having at least one bank account they have not accessed in the last three months, while a quarter of Generation Z and Millennial-aged people have two or more accounts that are currently not in use.

A further 46 per cent of UK consumers agreed they would be more likely to try out a new bank account if it provided personalised features based on preferences and lifestyle, jumping to over 70 per cent among Gen-Zs.

This has led to a quarter of Millennials and Gen-Zs adopting digital challenger banks, such as Monzo, Revolut or Starling.

The research discovered the most desired mobile features are the ability to immediately freeze and unfreeze cards that have been lost or stolen - almost half of Gen-Zs state this feature would encourage them to open a new account - followed by 40 per cent stated that having a visual summary of spending is desirable.

A third wanted a prediction of whether they were on course to run out of money before their next payday, while instant PIN changes, the ability to split the bill between friends, and cryptocurrency trading were also attractive features to Gen-Zs opening new accounts.

The study also found that over half of consumers would be happy to pay for features and perks tailored to their lifestyle and habits, with two thirds of Gen-Zs stating they would consider paying for a premium account with features such as cashback on shopping, free worldwide travel insurance, and loyalty points or air miles.

Jo Howes, commercial director at Crealogix, commented: “The fact that nearly 61 million bank accounts remain open but unused shows an interesting and gradual shift from our traditional banking brand relationships and loyalty, which is hard to measure using current metrics.

“Banking providers are really missing a trick by not tuning in to what consumers want from their banks – engagement is directly driven by understanding what features and services customers are looking for,” she continued, adding: “We are seeing greater adoption of challengers and neobanks because they are putting the consumer first – offering convenience and services to make their lives easier.”

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