Connect with us

Banking

1 IN 4 MILLENNIALS AND GEN-ZS ARE USING CHALLENGER BANKS WITH MONZO THE MOST POPULAR

A survey of UK consumers by digital banking solutions provider CREALOGIX has uncovered trends in the adoption of mobile-first challenger banks.

 

There’s a quiet revolution happening in banking. A survey of 2,000 UK consumers commissioned by CREALOGIX has found 1 in 4 under 37s have confirmed they are using digital-only challenger banks and 14 per cent of UK bank customers across all age groups have at least one mobile-only digital banking provider. Up to a third of under 37s have two or more accounts with challenger banks.

While the major banks maintain their dominant market share of current accounts at 87%[1], the digital-only banks are gaining ground amid high levels of activity in new account opening. 44% of survey respondents have opened at least one new bank account in the last 5 years, increasing to almost 80% of Gen-Zs.

 

61% of UK bank account customers are thinking about opening an account with a new provider in the next three years. This trend increases with Millennials and Gen Zs, with 75% looking to open a new account in the next three years. Take up of the digital-only challenger banks is three times higher amongst these age groups, demonstrating the extent to which the preferences of the digitally-savvy younger generations are driving the disruption of the market.

 

The research also suggests newcomers are picking up market share at a rapid pace. German challenger bank N26 feature in the survey results even though they only just launched in the UK in October 2018. 3% of Gen-Zs and 2.5% of Millennials surveyed said they have an N26 account, which would include people who signed up for early access or are still on a waiting list.

 

The survey of 2,000 consumers by CREALOGIX also revealed the most popular mobile-only digital challenger banks: Starling, Revolut and Monzo – Monzo being the most popular for the under 37s. (While Starling Bank and Monzo are licenced banks in the UK, Revolut currently operates via an e-money licence in the UK and uses passporting to distribute its offering across other European Union markets.)

 

Preferences changed markedly for older respondents, which overallare much less likely to use a challenger bank – only 6% of over-55s said they had an account with one of the leading challenger brands. Those who do have accounts with challengers preferred to use Revolut and Atom Bank.

 

After the financial crisis of 2008, market share of the major high street banks concentrated, with over 80% (and at times as much as 90%) of personal current accounts (PCAs) held in only the biggest six firms[2]. Soon after this a YouGov survey (2013) on public trust in banking found that consumer satisfaction was at an all-time low.

 

The new CREALOGIX research asked UK challenger bank customerswhat they liked best about their bank. Customers repeatedly highlighted ease of use, customer experience, accessibility, flexibility and innovative functionality such as the ability to lock bank cards temporarily, and get mobile notifications and visual summaries about spending activity.

 

When asked what they liked about using a digital challenger bank, one interviewee said: “This is probably the easiest account I have opened. It’s the only account I have where you can nominate the date your interest is paid and that predicts the amount of interest due for entire term of deposit”.

 

Another interviewee said: “I love how easy it is to use, how I can freeze my card and alter my settings on the fly and use the card freely abroad. I love my Monzo and Starling accounts because they are easy to use and easily accessible. They help me to budget my money and achieve saving goals.”

 

Jo Howes, Commercial Director at CREALOGIX UK, said: “The big question of fintech in the UK has been whether the new banks could eat into the highly centralised market share of the top tier banks. We are now seeing figures that clearly show the challenger banks are making rapid progress and gaining market share. The figures and rate of change are enough now to make incumbents sit up and take notice. Our research shows that consumers are attracted to the convenience, usability, and personalisation available from the challengers. To respond to the challenge, established banks need to accelerate their digital transformation and prioritise customer-oriented features and benefits.”

 

Anton Zdziebczok, Head of Product Strategy at CREALOGIXUK, said: “When they announced a limited beta launch recently, N26 had over 50,000 new UK customers on a waiting list. We are used to seeing lines around the block for new iPhone releases, but this is surprising for a bank account. For the first time, people are actually excited about what’s on offer from a bank. This is no accident because the challengers are using consumer-oriented design and marketing strategies to reimagine what banking can look and feel like. The question for incumbents – including both bank and building societies – is how they can transform their own offerings into something with enough appeal to compete with this influx of innovative competitors.”

 

The independent study was undertaken by Censuswide between 7-12 November 2018. It interviewed 2,000 18-65 year olds who currently have a bank account.

 

Media and industry specialists who wish to find out more about digital banking solutions from CREALOGIX can book a consultation via their website at: https://crealogix.com/uk/products/crealogix-digital-banking-hub/

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Banking

WHY BANKS NEED TO EMBRACE WELLBEING IN THE DIGITAL EXPERIENCE

Howard Pull, Head of Digital Transformation Strategy at MullenLowe Profero

 

The impact of the COVID-19 crisis on the economy has been huge. Over the past six months, youth unemployment figures have dropped, wages have stagnated and GDP has fallen by a record 20.4%. The drop in GDP is worse than the 2008 Financial Crisis, the Winter of Discontent and the Great Depression.

While the furlough scheme and other government measures have provided some much-needed financial support, the prevailing social and economic conditions have made money worries increasingly common. According to a recent survey from MullenLowe Profero, during the pandemic 40% of 18-25-year-olds are afraid to look at their bank account, with a further 40% stating that thinking about their money has a negative impact on their own personal wellbeing.

In response to these rising financial concerns from account holders, it is clear that banks need to help people – especially young people – feel more confident in managing their money. In particular, banks need to provide more educational support to their customers about how they can make the right financial decisions. This means designing tools and support services to enable more people to effectively manage their finances.

With 60% of consumers aged 18-25 believing that banks should help them have the capacity to absorb a financial shock, financial institutions also need to adapt their products and services to meet the needs of more uncertain account holders.

Adapting services, however, is easier said than done. The pandemic has radically shaped consumer behaviours and therefore the old rules no longer apply. For example, while consumers in the past may have preferred to discuss financial matters in person at a bank branch, risk of infection and the widespread use of digital tools has meant that the majority of young people want banks to provide wellbeing services online.

Digital experiences are also important to the future success of any bank. According to MullenLowe Profero’s report, digital experience is now the number one reason why young people choose a bank. Therefore, it is clear that banks during the pandemic and beyond need to reevaluate their operations and shape their personal wellbeing strategies around digital tools.

 

Community and Global Wellbeing

MullenLowe Profero’s report into financial wellbeing found that young people weren’t just concerned with their own personal wellbeing. They were also concerned about the importance of community and global wellbeing too. In fact, over half of 18-25-year-olds agree that the events of the last few months have made them seek out brands that do better for the world, with another 50% stating that the importance of a local community has increased during the pandemic.

Community wellbeing is concerned with the importance of local areas and the businesses and organisations that are based within them, whereas global wellbeing is concerned about the entire world. For banks, showing support for areas local to their branches and customers as well as issues affecting the globe such as the climate crisis is important to maintaining the trust and support of account holders.

Focussing banks on concerns around community and global wellbeing requires banks to assess their impact on the wider world. In other words, it forces banks to check who they support and where their money could be better placed. For example, young people want to be recognised for their positive behaviours. 56% of 18-25-year-olds want rewards and benefits for purchasing ethical and sustainable products and services.

The findings of the report found that young people across the board want financial institutions to reflect their values and to help them manage their finances. With COVID-19 continuing to wreak havoc on our day to day lives, banks can provide much-needed support by offering educational help as well as creating products and services that actively manage an account holder’s finances. They can also step in and provide support to the wider community and world by taking measures to reward ethical and sustainable behaviours.

 

Continue Reading

Banking

IMPROVING THE BANKING EXPERIENCE THROUGH INFORMATIVE AND ENGAGING VISUAL COMMUNICATIONS

Javier Lopez, General Manager Vertical Solutions, OKI Europe Ltd

 

Banks play an integral role in daily life. However, everyday opportunities such as attracting new customers into branches to open an account, or promoting new offers and services to existing customers, can be lengthy, expensive and cumbersome processes – especially when tailoring communications to the specific requirements of each branch, or differing customer needs.

Quickly creating and adapting in-branch visual communications to communicate and educate cost effectively while remaining on brand can be a challenge, especially for banks that have networks of branches and print their visual communications centrally or use third-party suppliers.

 

Building trust through signage

Visual communications can help build trust and satisfaction between you and your customers.  The ability to create and print personalised communications on demand can not only instil confidence in your brand, it can also offer the flexibility to quickly adapt to financial trends and fluctuations in interest rates. This is particularly important in today’s volatile market, so that you can keep your customers informed while remaining competitive.

Javier Lopez

Printing in-branch and on-demand is an immediate and cost-effective way for banks to communicate with customers. With the right printer on-site, branch staff can easily create and print signage and customer communications as well as everyday documentation to a professional quality as and when needed. This saves on the cost of third-party suppliers and eliminates lead times for essential signage.

The ability to print a comprehensive range of collaterals in-house including freestanding and hanging banners, posters, self-adhesive floor and window stickers, as well as personalised leaflets and direct mailers, can help keep customers informed about the latest services and offers. It can also be used to remind both customers and staff to adhere to social distancing guidelines. Furthermore, the same printer can be used for day-to-day documents such as personalised mortgage or loan offers.

 

A message that sticks

As the world adjusts to a new normality, OKI Europe Ltd recognises the challenges banks face when encouraging social distancing and has teamed up with Floralabels to offer free* social distancing media and artwork to create self-adhesive floor stickers that can be printed quickly and easily from an A3 colour printer such as the C800 Series.  Floor stickers can help ensure customers maintain safe distances while queuing at counters, kiosks and ATMs. The free stickers include self-adhesive floor circles (285 x 285mm) and rectangular floor banners in two sizes (215 x 900mm and 297 x 1,320 mm) with various designs and messaging options to choose from.

 

Achieving ROI with a do-it-all device

When it comes to printing in-branch, implementing a printer with unrivalled media flexibility will provide the best return-on-investment. Not only will the bank be saving on printing and delivery time and costs, it will also save on storage space or potential wastage as well as offering the flexibility to be more reactive to market trends in a timely manner.

OKI’s multi award-winning C800 Series A3 colour printer is designed to take up a minimal footprint and will supply everything from 1.3m metre hanging and freestanding banners to posters, self-adhesive floor stickers, window stickers, leaflets, flyers and much more on a diverse range of materials. Featuring OKI’s pioneering digital LED technology, the C800 Series delivers professional quality results, at high speed and on-demand.

Banks are vital to helping people and businesses prosper, supporting economic growth. Investing in cost-effective do-it-all devices that enable the fast rollout of eye-catching, professional quality collateral will help banks and their customers thrive.

 

Continue Reading

Magazine

Partner Events

Trending

Finance26 mins ago

THE OUTPERFORMER’S APPROACH TO FINANCIAL PROCESS AUTOMATION

By Michelle Trapani, Director of Product Marketing at Kofax   Achieving more with less is the mantra of our times....

Banking47 mins ago

WHY BANKS NEED TO EMBRACE WELLBEING IN THE DIGITAL EXPERIENCE

Howard Pull, Head of Digital Transformation Strategy at MullenLowe Profero   The impact of the COVID-19 crisis on the economy...

Finance10 hours ago

SAFEGUARD YOURSELF FROM FINANCIAL STRUGGLE AND UNCERTAINTY IN THE CASE OF DEMENTIA

Despite the rising incidence of dementia globally – The World Health Organization (WHO) estimates one new case every three seconds...

Technology10 hours ago

WHY TECHNOLOGY IS KEY TO THE FUTURE OF AUDITING

By Piers Wilson, Head of Product Management at Huntsman Security   The Financial Reporting Council (FRC), which is responsible for corporate...

Finance1 day ago

BOOM OR BUST: HOW THE FINANCIAL SERVICES SECTOR IS COPING

by Simon Black, CEO, Awaken Intelligence   Covid-19 has had an impact across all industries and businesses are feeling the...

Business2 days ago

BACK TO SCHOOL – CEOS NEED TO LEARN A NEW LANGUAGE, FAST!

By Simon Axon, Financial Services Industry Consulting practice lead in EMEA, Teradata   Chief Executive Officers of banks know all...

Business2 days ago

REVITALISING THE TOKEN MARKET

By Gavin Smith, CEO at Panxora   With interest rates near zero and fears that whipsawing stock markets are set for...

Business2 days ago

A SLEEPING DIGITAL GIANT WAKES? 4 KEY TRENDS ACCELERATING PAYMENTS TRANSFORMATION IN THE US

Lauren Jones, International Payments Ambassador, Icon Solutions   The US payments industry is undoubtedly ripe for change. Before the unprecedented...

Finance2 days ago

CAN ACCOUNTING DEPARTMENTS WIN THE FIGHT AGAINST FRAUD?

Magali Michel, Director, Yooz   Despite the implementation of increasingly sophisticated security systems, corporate fraud continues to gain ground: half...

Finance2 days ago

REMOTE INVOICE CAPTURE: ADAPTING TO THE NEW WAY OF WORKING

Author: James Adie, Vice President EMEA Sales at Ephesoft   When the government announced a country-wide lockdown on March 23,...

News2 days ago

GALA TECHNOLOGY SELECTS NUAPAY TO ENABLE OPEN BANKING PAYMENTS

Nuapay, powered by Sentenial, today announces it has been chosen by Gala Technology, a payment security solution specialist, to provide Open...

Top 102 days ago

THE ROLE OF OPEN SOURCE IN UNCERTAIN TIMES

Kris Sharma, Finance Sector Lead, Canonical   Financial services are an important part of the economy and play a wider...

Wealth Management2 days ago

SIMPLIFYING THE RETIREMENT FUND DEATH CLAIMS PROCESS

By Dolana Conco, Regional Executive at Alexander Forbes   Losing a loved one is one of the most difficult experiences...

News2 days ago

THE EMBEDDED BENEFITS IN ESEF DIGITAL FINANCIAL REPORTING

The inclusion of a simple link delivers serious gains in transparency, trust and real time verifiability for the whole financial...

News3 days ago

YAPILY AND OZONE API PARTNERSHIP MARKS TURNING POINT IN OPEN BANKING ADOPTION FOR BANKS

Open banking leader Yapily has today announced a strategic partnership with Ozone API, the leading API standards-based platform, to enable banks and...

News4 days ago

PROGRESSIVE SCENARIO PLANNING FOR THE LIBOR TRANSITION

James Gannaway, Head of Financial Services, Board International   The Financial Stability Board have announced that disruption to markets caused...

News4 days ago

AS DIGITAL TRANSFORMATION ACCELERATES, ENTRUST DATACARD BECOMES “ENTRUST”

Entrust name and identity reflect the critical need for trust at the heart of the digital transformation – and the...

Finance4 days ago

HOW TO TAME YOUR FINANCES TO REGAIN CONTROL OF YOUR MONEY

Credit, combined with bad spending habits, means many South Africans find themselves living from payday to payday, but you can...

Business4 days ago

HOW DATA VIRTUALISATION CAN HELP THE FS INDUSTRY REGAIN COMPLIANCE CONTROL

Charles Southwood, Regional VP – Northern Europe and MEA at Denodo    In recent years, the financial services (FS) sector has witnessed a...

Finance4 days ago

HOW TECHNOLOGY IS CHANGING ACCOUNTING

Mike Whitmire is Co-founder and CEO of FloQast,   The fundamentals of accounting have been around for hundreds of years....

Trending