Consumer trust in their banks has not been shaken by negative headlines or an influx of new and non-traditional entrants to the banking sector – 60 per cent of Britons trust banks more than other institutions to provide financial services, ranking above retailers (2%), supermarkets (3%), and mobile operators (just 1%), according to a survey conducted online by YouGov and commissioned by Intelligent Environments.
Banks cannot afford to become complacent about customer trust
For the majority of Britons, this loyalty is not driven by laziness or apathy. While a quarter (24%) will admit that they stay with their bank because it is too much trouble to switch, 51 per cent of Britons with a current account say that an effective digital banking service (online or mobile banking) is a key factor driving their bank loyalty.
The study for Intelligent Environments indicates that banks still enjoy resilient customer trust, though this will erode if they fail to keep pace with customers’ digital demands.
Retailers steal the digital services limelight for young customers
Digital banking is clearly a lynchpin of customer loyalty, and no more so than in the 18-24 age group.
In this age range, 20 per cent of current account customers who had experienced frustrations with digital banking in the past year were disappointed that current banking services are not sufficiently tailored to their individual needs.
Another key frustration for 18 per cent of these 18-24 year olds is the lack of consistency between digital and telephone banking services and the branch. 20 per cent of all current account holders aged 18-24 perceived supermarkets to offer a particularly well ‘integrated’ service across all channels, suggesting that the retail sector (a non-traditional entrant to the banking sector) may be best placed to attract attention from ’Generation Y’ bankers.