One in three UK adults have considered changing bank in the last 12 months

The poll - commissioned by Dell Boomi and carried out by OnePoll - quizzed 1,000 adults across the UK on the customer experience provided by their bank.

Among those that have considered changing banks, better interest rates/services (50%) and attractive new joiner incentives elsewhere (47%) were the leading drivers, followed by feeling they could get a better digital customer experience elsewhere (21%) or a better in-branch customer experience among other banks (19%).

When asked why they bank with their current provider, a good all-round customer experience (44%) was the main reason, followed by having “always” been with them (39%) and a good online banking experience (37%). A good banking app was considered most important by over half (58%) of 18-24s – underlying the emphasis placed on tech by younger generations of customers.  

Growing competition from digital banks

Of those who have a ‘traditional’ bank account with a high street bank such as NatWest or Barclays, one in five (17%) also have a digital bank account (with the likes of Monzo, Starling, Revolut, etc.) – a figure which rises to over half (59%) under 35s.

Nearly one in five (17%) believe their traditional bank feels ‘a bit old’ and they’re looking for an improved digital performance. This increases to over a quarter (29%) of those aged under 35 suggesting that more young people are looking for their bank to modernise its approach.

Tech over branches?

One in ten (10%) Brits haven’t visited their bank’s branch for over a year, yet over half (51%) of over 55s have used their branch services at least once in the last month.

A fifth (22%) would even be happy if their bank closed its branches if it resulted in an improved mobile app / online banking experience. This figure rises to over a third (39%) among those aged 18-24.

“New account holders won’t hold the same loyalty to their bank as previous generations have. New players entering the market have overhauled expectations and set the new standard around the digital banking experience. Customers are looking for more than better products when choosing their next provider,” said Derek Thompson, VP of EMEA at Dell Boomi.

“It’s therefore critical that banks assess their current IT ecosystem, ensuring they’re not held back by their legacy infrastructure and can quickly unite their systems, deploying more agile technology to transform customer experience,” he added. 

Further investment could also be required to improve the robustness of a bank’s IT systems - with all respondents experiencing IT outages with their current bank in the last five months on average.

Open banking education required

Open banking, which came into force on January 13, 2018, requires banks to increase transparency and open APIs to enable third-party developers access to their account holder data and services. Just 21% report their current bank offers open banking services, while 66% are not sure if they do – indicating a requirement for further education in the space.