As digital technology continues to reshape the financial landscape, banking preferences are shifting in significant ways. Traditional bank branches, once the cornerstone of personal finance, are becoming less central to people’s banking needs.
To explore how preferences are changing when it comes to their banking habits, SumUp conducted a nationwide survey, gathering insights from UK consumers about banking. The findings offer valuable insights into whether people would consider switching to a fully digital, branchless bank, how often they visit their bank branches, and the changes they have noticed in services offered.
When it comes to residents of London, what are their banking preferences?
Would Londoners consider switching to a fully digital, branchless bank?
With the rise of mobile banking technology, a growing number of digital, branchless banks are emerging across the UK, offering a seamless and convenient banking experience. As traditional bank branches become less essential for everyday banking, would people in London consider switching to a fully digital bank?
For 23% of people in London, the move to a fully digital bank has already been made, and an additional 32% are open to making the switch, saying that they can see key advantages such as greater convenience and lower fees. However, almost a quarter (24%) of people who expressed their interest said they would require more information before committing to a digital-only bank. On the other hand, 21% remain attached to traditional banking, preferring the security and familiarity of physical branches.
London has long been a trendsetter when it comes to consumer behaviour, with its thriving economy making it a key way to measure changes in the wider market. As banking preferences continue to evolve, Londoners are at the forefront of adopting new technologies and banking methods. In comparison to a number of northern cities, Londoners appear to have embraced digital banking much quicker, with half (50%) of residents in Sunderland would not consider switching, this statistic remains the same for people in Bradford and York.
How often are people visiting their bank, and how are services changing?
As digital banking offers faster, more convenient services, the need to visit physical branches has diminished for many consumers. But are people still heading to their local banks, or has the shift to online banking made in-person visits a thing of the past?
Almost a quarter (23%) of people in London haven’t visited a bank branch in over a year, opting instead to do all of their banking online. For 19%, while they have visited a branch in the past year, trips are infrequent. A further 23% said that they have visited in the last six months, however, it is usually for special services such as resolving issues or seeking advice. Meanwhile, over a quarter (28%) have visited within the last month for routine transactions like deposits or withdrawals. Surprisingly, while 9% of people use ATMs regularly, they have never stepped foot inside a bank branch.
As fewer people visit bank branches, almost half (48%) have noticed changes in the services available at branches in their area. A third (33%) of Londoners have seen branches close locally, which they feel has impacted their banking experience, whilst 14% said they have noticed changes however it does not impact them as they do all of their banking digitally. Furthermore, 11% said whilst they have not noticed any major changes, they have observed that branches are offering less in-person services.
22% of people said they have noticed no bank branch closures or lack of availability in their area, whilst 19% rarely pay attention to physical bank branches and their offerings.
How are attitudes different depending on age?
Across the UK as a whole, attitudes towards the shift to digital banking vary. Among those aged between 18 and 24, over a quarter (29%) have already adopted a fully digital bank, with another 29% considering the switch, drawn in by its convenience. Similarly, 27% of those aged between 25 and 34 are already using a digital-only bank, and over a third (36%) are seriously considering the transition. For younger generations, the appeal of quick, flexible, and cost-effective banking is clear, reflecting their preference for convenience and tech-savvy services.
Furthermore, over a quarter of individuals aged 18-24 (29%) reported that it has been more than a year since they last visited a physical bank branch, as they now handle all of their banking online. In fact, 14% of this age group stated that, although they occasionally use ATMs, they have never stepped foot inside a bank branch. The trend is similarly evident among those aged 25-34, with 28% revealing that their last visit to a bank was over a year ago, driven by the widespread shift to online banking. Additionally, 12% of individuals in this age range admitted that they have never visited a bank branch at all. These figures highlight the growing reliance on digital banking solutions, particularly among younger generations.
Nicolas Vrillaud, Marketing & Growth Leader at SumUp commented on the report, saying “At SumUp we’re passionate about creating a world where everyone can build a thriving business. Banking is an integral part of building and running a business, and unfortunately the way it’s delivered is often seen as a pain point by SMEs. We conducted this survey to better understand evolving banking preferences in the UK, and observed that whilst digital banking services adoption is increasing there is still a lot of work to be done to convince the majority of consumers and businesses to make the switch.”
- Caroline Berry
