Digital banking increasingly popular, but almost half of UK customers still want face-to-face contact

That’s according to the 2016 EY Global Consumer Banking Survey which found that although digital banking is on the rise, around a third of respondents claiming they use online and mobile banking more than they did a year ago, people still want to deal with someone face-to-face for certain banking queries.

In addition, a third (33 per cent) claim to actively distrust a bank that has no high street presence, even if they predominantly use digital banking.

The survey also revealed that services and products offered by non-traditional banks are increasingly being seen as competition to high street banks, which typically offer a slicker customer experience, and operate a model that many people feel better understands their needs.

Thirty-seven percent of banking customers claim to have used non-bank providers in the last year for both core banking products and other financial services products such as car loans and insurance products, and 23 per cent of customers are considering using non-banks going forward.

Sue Dawe, EY partner and head of financial services in Scotland, said: “The banking experience for customers continues to transform through the use of innovative technology and this presents a huge opportunity for banks. In a competitive market where consumers find it difficult to distinguish between the various products offered by different banks, customer experience is a crucial differentiator and should be a priority for banks.

“However, it is also clear that face-to-face interaction remains important and customers should not be rushed into online and mobile banking. Similar to the introduction of email and computers in place of fax machines, this is a new approach that customers will want help with from their bank.”

Almost half (48 per cent) of UK banking customers trust that both their money and personal details are kept safe, and 41% trust that any fraudulent activity on their account will be protected by their bank. However, 80 per cent of those surveyed worry they do not receive high quality unbiased advice from their bank, and 82 per cent claimed they don’t trust that they are being told if there is a product which better suits their needs.

Ms Dawe added: “Trust is a vital component of strong relationships between customers and their banks, so it is a concern there is such a high lack of faith in the advice given. The number of people taking control and proactively managing their finances is on the rise, but this should not be due to a feeling that banks are not providing the service they desire.”