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The UK's top banks are going to new lengths to make their mobile channels more attractive to customers, as customers stream into digital channels and as the challenger bank threat looms larger.
In Business Insider Intelligence's first annual UK Mobile Banking Competitive Edge Study, exclusive data shows that 72% of all UK respondents surveyed use mobile banking. Of those that use mobile banking, 82% said mobile was their primary banking channel and 62% said they would even change banks if the mobile banking experience fell short.
In response, digital teams at high-street banks like Lloyds, Halifax, and Bank of Scotland are placing mobile channels at the heart of their digital transformation initiatives: "Technology is at the centre of our strategy...we are constantly developing new mobile banking features to help our customers stay connected to their finances," according to Zak Mian, Group Digital and Transformation Director at Lloyds Banking Group.
In the UK Mobile Banking Competitive Edge Report, we take a deep dive into this trend by benchmarking the largest 10 financial institutions offering zero-fee current accounts in the UK on whether they offer the mobile features that customers say they care most about.
This 63-page report draws on two exclusive data sources: a benchmark of the 10 largest UK financial institutions by 33 features and a UK consumer study on the desirability of each of those features. This research gives digital teams a data-driven look into which highly in-demand features, like card controls, they should focus their attention on. On the other hand, it also spotlights which features should be deprioritized, by showing that voice banking has minimal consumer demand, for instance.
Here are a few key takeaways from the report:
- Lloyds has the most desirable mobile banking feature set in the UK. The bank offers in-demand security, and transfer features, along with competitive capabilities related to account access, conversational banking, and account management. Barclays took second place and Nationwide rounded out the top three.
- Security features were the number one priority for consumers. For example, our study's single most in-demand feature – the ability to order a replacement card in-app – fell under this category, while the ability to put a temporary hold on a credit or debit card was also among the survey's top five features, out of a list of 33.
- Features tied to accessing bank accounts are also highly sought-after. This section includes capabilities that enable frictionless access to users' accounts in mobile banking. To differentiate themselves, banks can look to offer features beyond the commonly supported biometric login options, such as a four- to six-digit passcode login and the ability to see accounts at other banks in one portal.
- Digital money management features are sought-after by the UK mobile banking users in our study. This section includes features that help users cut spending and grow savings, including the abilities to view recurring charges and spending within specific date ranges. The ability to cancel subscriptions, such as for Netflix, was called "extremely valuable" by 30% of respondents and was the section's most in-demand feature.
- Conversational banking capabilities are not a priority for consumers. Four out of five lowest in demand features fell into the category.
In full, the report:
- Shows how 33 features, selected to be rare and attractive to customers, stack up according to how valuable respondents in our survey actually say they are.
- Ranks the top 10 UK financial institutions that offer zero-fee current accounts on whether they offer each of those features.
- Analyzes how demographics skew demand for different mobile features.
- Provides data-driven strategies for banks to best attract and retain customers with mobile features.
The full report is available to Business Insider Intelligence enterprise clients. To learn more about this report, email Head of Enterprise Subscription Sales Chris Roth ( [email protected] ) or check to see if your company already has access.
Business Insider Intelligence's Mobile Banking Competitive Edge study includes: Barclays, Co-operative Bank, CYBG, HSBC, Lloyds Banking Group (Lloyds, Halifax, and Bank of Scotland), Metro Bank, Nationwide, Royal Bank of Scotland (NatWest, RBS), Santander, and TSB.
The survey data for this report comes from Business Insider Intelligence's UK Mobile Banking Competitive Edge Survey, which was fielded between June 4, 2019, and June 11, 2019 — 1,083 UK respondents were asked to rank the value of 33 innovative mobile banking features. Respondents to the survey were mobile banking users selected to align with the UK population on the criteria of gender and age..