A recent study by global analytics software leader FICO highlights a major shift in the banking habits of UK consumers. While the closure of physical bank branches continues to spark controversy, 75% of respondents now consider their banking app the most or second most important feature of their primary bank account. In contrast, only 33% believe having a local branch is a top priority.
Despite this digital shift, traditional banks still dominate the UK market, serving 81.5% of consumers compared to just 12% using digital-only banks. Understanding this evolving preference for digital convenience and human interaction is crucial for banks aiming to improve customer experience.
Key Findings from the 2024 FICO Bank Customer Experience Survey
- 75% of respondents ranked a good banking app as the most or second most important factor when choosing a bank.
- Younger consumers prioritize banking apps more than older demographics—over 50% of the three youngest age groups rated it as most important, compared to just 24% of those aged 65+.
- 33% of UK consumers still value having a nearby branch for their primary account.
- 80% of respondents said that access to real people remains critical.
- 51% of consumers aged 18–24 rated human interaction as highly important, compared to 60% of those over 65.
- 64% believe customer service is as important as banking products, while 22% think it is even more important.
Balancing Digital Banking with Human Interaction
The rise of banking apps has changed consumer expectations, but human interaction remains essential. The study found that 80% of customers still want the option to speak with real people, particularly when facing app outages or complex banking issues.
While AI chatbots are gaining traction, they are yet to replace human interaction—only 35% of respondents found them valuable. To enhance customer experience, banks must focus on seamless omnichannel support, allowing consumers to transition effortlessly from AI-driven chats to live video or phone assistance.
How Customers Prefer to Communicate with Their Banks
The FICO study also examined consumer preferences for different communication methods:
- Text messages are the top choice for fraud alerts, ID verification, and overdue payment notifications.
- Emails are preferred for marketing, policy updates, and account reminders.
- Landline calls are the least favored method in every category.
Expert Insights: The Future of Banking
Mark Whale, Financial Services Partner at FICO, emphasized the importance of balancing digital solutions with personalized service:
“Although banking apps are now a priority for UK consumers, banks cannot rely on them entirely. A strategic balance between apps and human interaction is essential. Used intelligently, AI can improve customer interactions, but banks must analyze individual preferences to ensure they communicate effectively and build lasting customer relationships.”
As the banking landscape evolves, financial institutions must invest in AI-driven analytics, omnichannel communication, and personalized service to meet consumer expectations and strengthen customer trust.
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