The much hyped digital disruption is taking place at a much slower pace in the UK banking sector than reports and commentators have suggested, and consumers are still in the early days of embracing and encouraging change, according to a survey report published YouGov and ACI Worldwide.
The online survey, in which more than 2,000 UK adults participated, found that the majority of account holders are in fact loyal to their banks, but will quickly adopt new services that are convenient and easy to use.
The report says that 88% of current account holders have no intention of switching bank accounts within the next 12 months.
Staggering 82% of the respondents said they never use mobile payment services such as PayM or PingIT during an average month, while 59% said never use mobile banking within this same timeframe.
Further, 78% of the respondents stated that it is unlikely they would use banking services offered by the likes of Google, Apple or Facebook.
Commenting on the finding, ACI Worldwide global business lead, mobile payments, Dean Wallace said: "The results appear to fly in the face of the popular ‘banking disruption theory’ and suggest that the majority of consumers are in fact loyal to their banks, that they don’t really like change and are staying put. This could be because e-services offered by most UK retail banks today are simply not compelling or different enough for the majority of customers to change bank account providers."
The report added that 50% of respondents are now regularly using third-party payment providers such as PayPal (once a month). 76% of current account holders online are using Internet banking at least once a month and 29% of UK consumers are now paying regularly via contactless cards, with Londoners leading the charge; 56% of the respondents said they are using contactless payment methods every month.
"The reality among many consumers is that they don’t really know what they want until it’s available or already in use by friends or family. The fact that nearly 90% of current account holders will stay put with their current bank should only be a mild solace for banking providers, as who knows what will happen in the next year or two," Wallace added.
"It is now that banks need to differentiate themselves from their competition and find ways to better attract and retain their customers. In terms of providing easily accessible and flexible services, banks need to focus on those opportunities that exist and grasp them quickly. The history of adoption shows that there is likely to be a ‘tipping point,’ especially for younger customers who will follow where their peers lead."