Some four in 10 challenger bank users (40%) have reported an instant bank account set up, according to a new report.
Research conducted by Censuswide and commissioned by Five Degrees has revealed that challenger banks are leading the way in instant bank account set up, although traditional banks are catching up.
Over a third of traditional banking customers (37%) reported an instant bank account set up.
In addition, 95% of Brits use a traditional bank and are more likely to take out a mortgage with their traditional bank (21%) rather than a challenger bank (11%).
“Our research shows that the majority of traditional and challenger banks in the UK are currently lagging behind customer demand for an instant account set up and risk missing an opportunity to attract new customers and retain existing ones,” said Peter-Jan Van de Venn, managing director and banking IT specialist at Five Degrees.
“With the rise of ‘big tech’ such as Google and Amazon, consumers are now used to fast, personal, safe and always-available portable solutions.
“Banks must ensure that they take the same highly personalised and nimble approach as big tech, otherwise they will risk alienating existing and new customers with [lengthy] on-boarding processes.”
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...