LONDON: As the banking landscape evolves, British consumers are placing increasing value on mobile banking apps, according to the 2024 FICO Bank Customer Experience Survey.
Three-quarters of respondents identified a high-quality phone app as the most important or second most important factor in their choice of primary banking services. In contrast, just 33% prioritized the availability of a nearby branch.
The survey revealed that the majority of consumers (81.5%) still utilize traditional banks, compared to 12% who have shifted to digital banks. These findings highlight the growing importance of understanding changing consumer preferences.
Younger Generations Embrace Banking Technology
Younger consumers are leading the shift toward digital banking solutions. Over half of respondents from the three youngest demographics rated app quality as their top priority. However, only 37% of individuals aged 55 to 64 and 24% of those over 65 shared this sentiment.
Despite the growing reliance on apps, 80% of respondents still consider access to human interaction vital. This was particularly evident among older age groups, with 60% of over-65s giving top marks to human contact, compared to 51% of 18- to 24-year-olds.
Customer Service Still Matters
Consumer expectations around customer service remain high. 64% of participants said customer service is as important as the bank’s products or services, while 22% deemed it even more critical. The survey also revealed that customer service becomes especially important when banking apps are unavailable, underscoring the need for a balance between digital tools and personal interaction.
Mark Whale, financial services partner at FICO, emphasized the need for a dual approach. “Although banking apps have become more important to British customers, it is vital that banks recognize that they can’t rely on them entirely. A strategic balance between apps and human interactions is critical.”
Preferred Communication Channels Vary by Context
The survey highlighted consumer preferences for different communication methods depending on the type of message. Text messages were favored for fraud alerts, identity verification, and payment reminders, while emails were preferred for marketing and account updates. Landline phone calls ranked as the least popular option across all categories.
As artificial intelligence continues to evolve, chatbots and other digital solutions are becoming part of the customer service toolkit. However, only 35% of respondents currently find chatbot services important. Banks are encouraged to invest in AI-driven solutions that enable seamless transitions between automated and human support, ensuring efficient and personalized customer experiences.
The findings underline the importance of adapting to consumer demands while maintaining robust customer service, as banks navigate an increasingly digital future.