1 week Ago By Lauren Hinton
September 23 2024 Physical banking is now of less importance to UK consumers than those in Europe or the US, new research has found. The findings – commissioned by CRIF , Europe’s leading provider of consumer and credit information – show UK consumers are now the least likely to choose a bank or financial provider based on it having a physical presence near where they live. Overall, less than a quarter (23%) of adults in the UK say having a bank branch near to where they live is important when deciding who to bank with.
In contrast, more than a third of Americans (38%) and Europeans (35%) still say having a branch near them is important when choosing who to bank with. Analysing generational differences, CRIF’s report revealed that all age groups in the UK place less importance on physical banking than their equivalents in Europe and the US. Young UK adults (18-34) are the least likely to value having a bank branch nearby, with just one in ten (13%) saying it is important to them, compared to the 21% in 2023 who said they would now choose a bank based on it having a nearby branch.
Older generations (55+) in the UK are the most likely (33%) to favour a bank with a physical presence near them, yet the proportion that feel this way is still far lower than those in the US (53%) and all other European countries surveyed (41%). The results highlight the shifting priorities of people in the UK when they interact with their bank, which may have been influenced by the impact of branch closures. Banks and building societies in the UK have closed more than 6,000 bank branches since 2015.
* At the same time, it’s estimated around 46 million UK adults now use a form of online banking.** Looking at the factors for choosing a bank or financial providers, Brits prioritise banks that offer products and services suited to their needs (41%), followed by banks having a well-established brand (35%). UK consumers are also the most likely in Europe to place importance on good customer reviews (28%).
A similar proportion (27%) say they want to be able to manage all aspects of their banking service online, including applying for new products. This proportion remained consistent across all age groups, including those over 55 (26%). Sara Costantini, Regional Director for the UK & Ireland at CRIF said: “The way in which we manage our finances is changing, and nowhere is this clearer than in the UK.
While in the US and Europe many people still value the importance of a local bank branch, Brits of all ages are placing less importance on this when choosing a bank. “We know that the UK is the leader in financial services and communication technology in the European area. This, coupled with the ongoing closures of branches, has fuelled the embrace of digital banking.
“Yet this poses challenges for banks and other financial providers, who must not only adapt to meet growing digital demands but do so in a way that meets high expectations for tailored services and products, while maintaining more traditional services to support all existing clients.” The new data forms part of CRIF’s 2024 Banking on Banks report series, with its most recent report looking at consumer trust around data and financial services. It builds on 2023’s report and research, which found many consumers across Europe had embraced digital banking as a means of better managing their finances during difficult economic times.
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