More than three in 10 (31%) UK banking customers are still using physical channels to buy products in 2023, new research has indicated.

Findings published by consultancy firm Kearney revealed that one in four (26%) UK banking customers still visited a branch every month in 2022.

Kearney announced the latest findings of its annual European Retail Banking Radar, which includes a channel survey, conducted annually since 2020. It is based on research covering 89 retail banks across 21 European markets – 51 banks in 13 Western European markets and 38 banks in 8 Eastern European markets.

The research has found that following the pandemic, an “omnichannel” combination of physical and digital options is of clear importance to consumers. Overall, 29% of consumer interactions in Europe in 2023 were omnichannel, namely where research around products was conducted through one channel but the purchase made in another.

Kearney also revealed that the UK, along with Spain, has shown the most dramatic shift in consumer attitudes toward digital banking channels in recent years, with digital purchases rising from 16% to 38% (Spain) and 48% to 69% (UK) between 2020 and 2023.

It also suggested the UK trends more digital than the European average, with more than two-thirds (69%) of all purchases through digital channels made on online or via mobile banking in 2022.

Partner at Kearney, Sameer Pethe, commented: “It’s clear from our findings that the trend toward digital banking that accelerated during the pandemic is still here to stay. However, demand for physical branches from consumers is still a key factor – with customers across a range of demographics not yet ready to abandon in-person interactions.

“Moving forwards, it will be a balancing act for many financial institutions as they aim to satisfy consumers’ growing omnichannel preferences whilst managing the cost implications of maintaining a branch network in a time of increasing digitisation.”

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