Almost a third of SME finance managers (29%) have claimed that they are likely to switch their main bank account within the next five years, according to recent research.
Finastra’s SME Opportunities for Digital Banks report found that 49% of respondents under the age of 45 said they would be very or fairly likely to switch banks in the next five years.
Other highlights from the report included:
- the most popular reasons given for switching accounts included a better overall service, an incentive to switch and a better mobile banking experience
- 32% of recent switchers now hold their account with a challenger bank
- 53% of those that switched in the past three years said they were likely to switch banks again
- 40% of SME finance managers under 45 would consider banking with a tech giant like Google, Amazon or Facebook, while only 13% of over 55s would consider the same
“This report is a must-read for any bank targeting the UK SME market,” said Mary Connor, director of product management and retail banking at Finastra.
“It highlights that differentiation beyond the online banking experience — in terms of the products and services offered — is really important.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
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...