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MagiClick: 81% base bank choice on digital experience

Jake Carter

September 22, 2021

An estimated 81% of adults have reported that the quality of online experience determines who they bank with, according to research into post-pandemic digital banking trends in the UK, commissioned by MagiClick.

The survey of 2,087 UK adults, conducted by YouGov, showed differences in the importance of online experience between different age groups, with 46% of those in the 55-plus age group stating that it was ‘very important’ compared to 26% of 18 to 24-year-olds.

The research also found that use of all digital banking services had grown since the start of the pandemic, with the largest increases being for use of mobile banking apps, with two-thirds (66%) of those who have used digital banking services more since the pandemic began stating they have used mobile banking apps more often.

This growth in the use of mobile banking apps has been led by the under-35s, with 85% of 18 to 24-year-olds and 79% of 25 to 34-year-olds using mobile banking apps more often.

Use of mobile banking apps within the 55-plus age group has also seen a significant increase (52%).

Use of online web banking also rose significantly, with half (50%) of those who have used digital banking services more since the pandemic began stating they have used online web banking more often.

The highest rise in usage for online web banking was among the 55-plus age group (60%).

Despite the growth of mobile banking apps and online web banking, the use of both website chat facilities and automated chatbots only saw overall rises of 14% and 10%, respectively.

The research also highlighted the wider adoption of making payments via smartphones and smartwatches, with younger generations leading the way.

Among those who have used digital banking services more since the pandemic began, 35% of 18 to 24-year-olds increased their usage, followed by 32% of 25 to 34-year-olds and 31% of 35 to 44-year-olds.

The 55-plus age group has remained more reluctant to embrace making payments via smartphones and smartwatches, as only 16% of this age group increased their usage.

Mark Lusted, chief executive of MagiClick UK, said: “This research clearly shows that the events of the past 18 months have accelerated the adoption of digital banking services by consumers across all age ranges.

“The quality and ease of use of the digital experience is clearly now of high importance to a large majority of users when choosing who to bank with and, interestingly, this was of highest importance to the over-55s.

“In an increasingly competitive landscape, with an array of new digital-only challenger banks entering the market, incumbent banks should take note.

“The research also showed that the often-predicted demise of web-based banking services in favour of mobile banking apps has been overstated and that customers are choosing to use both facilities more, with little to separate them in terms of how much their usage has increased.

“It also shows that banks are yet to fully realise the benefits and opportunities that website chat and automated chatbot facilities can provide to their overall service proposition, with those services seeing the smallest increases in usage during this period.”


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