The UK's digital-first direct banks are outperforming incumbents when it comes to overall customer satisfaction, new research has found.
A study from financial services technology provider FIS has revealed that 76% of digital-first direct bank customers said they were “very satisfied” with their banking relationships.
This was higher than the figure recorded for those who banked with one of the top 50 global banks, where 69% said they were “very satisfied”.
The Performance Against Customer Expectations (PACE) report by FIS also found that all generations except baby-boomers turned to their mobile phones first when interacting with their bank.
Overall, just one in five customers had heard of the term 'Open Banking', while when asked who they would trust more to provide a financial mobile app – a bank or technology provider – 61% said a bank.
Of those who banked with one of the top 50 global banks, just 4% said a technology provider.
Bruce Jennings, strategic development director at FIS (pictured above), said the PACE findings showed how competitive the UK market had become.
“Consumers are demanding ever-more consistent and convenient banking experiences, and it's the mobile interface – not physical locations or even personnel – that are now the face of a bank.
“This presents a clear advantage for the digital-first challenger banks that have entered the market in the wake of PSD2.
“For long-established banks, Open Banking provides an opportunity to leverage consumers' favourable views of their security protocols and engage the right technology partners to add the ancillary products and services customers want.
“However, they must first complete the long-avoided digital transformation to ensure they can effectively serve today's customers and maintain their market dominance.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Are UK consumers aware of new investment opportunities?
Almost half of consumers (48.3%) have not made an investment of £100 or more in the last decade, according to the latest research commissioned by digital banking solutions provider CREALOGIX...
Aldermore completes £325m RMBS deal
Aldermore has completed a residential mortgage-backed securities (RMBS) transaction which will raise £325m of new funding for the bank...
Close Brothers to roll out new deposit platform during 2019 financial year
Close Brothers Group PLC has announced it will be rolling out its new deposit platform during the 2019 financial year...
STB introduces 90% LTV mortgages to core range
Secure Trust Bank Mortgages has added 90% LTV products to its core range...
Revolut nears 3 million users
Revolut has announced that it tripled its user numbers in 2017 from 450,000 to 1.3 million...
Arbuthnot provides working capital facility to shower company
Arbuthnot Commercial Asset Based Lending (ABL) has provided a working capital facility to Majestic Shower Company...
Metro Bank names new NED
Metro Bank has announced the appointment of Catherine Brown as an independent non-executive director...
FP Show confirms Zopa co-founder as keynote speaker
James Alexander, co-founder and former CEO at Zopa (pictured above), has been named as the keynote speaker at the forthcoming Finance Professional Show...
Metro Bank provides £4m invoice finance line to healthcare business
Metro Bank has provided a £4m invoice finance line to medical insourcing specialist 18 Week Support Group...
Modulr to create over 30 new jobs in Scotland
Modulr has completed its latest funding round led by digital venture builder Blenheim Chalcot, which takes the latter’s total investment in the payments fintech to £10.5m...
Specialist banks answer need for products that ‘reflect the reality of today’s society’
Better service and products are the main reasons why a broker would use a specialist bank, according to the latest poll by Specialist Banking...