Four in five people say online experience determines who they bank with

More than four in five adults (81%) would say the quality of the online experience determines who they bank with, according to new research into post-pandemic digital banking trends from MagiClick.

A study by the digital agency highlighted notable differences in the importance of online experience between different age groups with 46% of those in the over-55 age group stating it was “very important”, compared to only 26% of 18 to 24 year olds.

The research, based on a survey of 2,087 UK adults last month, also found that use of all digital banking services has grown since the start of the pandemic. The largest increase has been for the use of mobile banking apps, with two-thirds (66%) of those who have used digital banking services more since the pandemic began stating they have used mobile banking apps more often.

This growth in the use of mobile banking apps is led by the under-35s, with 85% of 18 to 24 year olds and 79% of 25 to 34 year olds, using mobile banking apps more often. Use of mobile banking apps among over-55s has also seen a significant increase (52%).

MagiClick UK CEO, Mark Lusted, commented: “This research clearly shows that the events of the past 18 months have accelerated the adoption of digital banking services by consumers across all age ranges. 

“The quality and ease of use of the digital experience is clearly now of high importance to a large majority of users when choosing who to bank with and, interestingly, this was of highest importance to the over 55s. In an increasingly competitive landscape, with an array of new digital-only challenger banks entering the market, incumbent banks should take note.”

MagiClick’s research also suggested the use of online web banking has risen significantly, with half (50%) of respondents who have used digital banking services more since the pandemic began stating they have used online web banking more often. The highest rise in usage for online web banking was amongst over-55s age group, with 60% using this service more often.

Despite the growth of mobile banking apps and online web banking, however, the use of both website chat facilities and automated chatbots only saw overall rises of 14% and 10% respectively.

Lusted added: “The research also showed that the often-predicted demise of web-based banking services in favour of mobile banking apps has been overstated and that customers are choosing to use both facilities more, with little to separate them in terms of how much their usage has increased.

“It also shows that banks are yet to fully realise the benefits and opportunities that website chat and automated chatbot facilities can provide to their overall service proposition, with those services seeing the smallest increases in usage during this period.”

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