These are the top 5 UK financial institutions ranked by the mobile banking features consumers value most (LYG, BCS, NBS, CYBG, RBS)
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The UK's top banks are going to new lengths to make their mobile channels more attractive to customers, as customers stream into digital channels and as the challenger bank threat looms larger. In Business Insider Intelligence's first annual UK Mobile Banking Competitive Edge Study, exclusive data shows that 72% of all UK respondents surveyed use mobile banking. Of those that use mobile banking, 82% said mobile was their primary banking channel and 62% said they would even change banks if the mobile banking experience fell short. In response, digital teams at high-street banks like Lloyds are placing mobile channels at the heart of their digital transformation initiatives. And in its latest annual report, Lloyds Banking Group said 2018 was the first time it met more of its "customers' simple banking needs via mobile than any other channel." In the UK Mobile Banking Competitive Edge Report, we take a deep dive into this trend by benchmarking the largest 10 financial institutions offering zero-fee current accounts in the UK on whether they offer the mobile features that customers say they care most about. This 63-page report draws on two exclusive data sources: a benchmark of the 10 largest UK financial institutions by 33 features and a UK consumer study on the desirability of each of those features. This research gives digital teams a data-driven look into which highly in-demand features, like card controls, they should focus their attention on. On the other hand, it also spotlights which features should be deprioritized, by showing that voice banking has minimal consumer demand, for instance. Here are a few key takeaways from the report:
Lloyds has the most desirable mobile banking feature set in the UK. The bank offers in-demand security, and transfer features, along with competitive capabilities related to account access, conversational banking, and account management. Barclays took second place and Nationwide rounded out the top three. Security features were the number one priority for consumers. For example, our study's single most in-demand feature – the ability to order a replacement card in-app – fell under this category, while the ability to put a temporary hold on a credit or debit card was also among the survey's top five features, out of a list of 33. Features tied to accessing bank accounts are also highly sought-after. This section includes capabilities that enable frictionless access to users' accounts in mobile banking. To differentiate themselves, banks can look to offer features beyond the commonly supported biometric login options, such as a four- to six-digit passcode login and the ability to see accounts at other banks in one portal. Digital money management features are sought-after by the UK mobile banking users in our study. This section includes features that help users cut spending and grow savings, including the abilities to view recurring charges and spending within specific date ranges. The ability to cancel subscriptions, such as for Netflix, was called "extremely valuable" by 30% of respondents and was the section's most in-demand feature. Conversational banking capabilities are not a priority for consumers. Four out of five lowest in demand features fell into the category.
In full, the report:
Shows how 33 features, selected to be rare and attractive to customers, stack up according to how valuable respondents in our survey actually say they are. Ranks the top 10 UK financial institutions that offer zero-fee current accounts on whether they offer each of those features. Analyzes how demographics skew demand for different mobile features. Provides data-driven strategies for banks to best attract and retain customers with mobile features.
The full report is available to Business Insider Intelligence enterprise clients. To learn more about this report, email Head of Enterprise Subscription Sales Chris Roth ( email@example.com ) or check to see if your company already has access. Business Insider Intelligence's Mobile Banking Competitive Edge study includes: Barclays, Co-operative Bank, CYBG, HSBC, Lloyds Banking Group (Lloyds, Halifax, and Bank of Scotland), Metro Bank, Nationwide, Royal Bank of Scotland (NatWest, RBS), Santander, and TSB. The survey data for this report comes from Business Insider Intelligence's UK Mobile Banking Competitive Edge Survey, which was fielded between June 4, 2019, and June 11, 2019 — 1,083 UK respondents were asked to rank the value of 33 innovative mobile banking features. Respondents to the survey were mobile banking users selected to align with the UK population on the criteria of gender and age.Join the conversation about this story »
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This story was delivered to Business Insider Intelligence Banking Briefing subscribers earlier this morning. To get...This story was delivered to Business Insider Intelligence Banking Briefing subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. UK-based neobank Monzo announced the launch of two business bank accounts that it trialed for the last 12 months and extended early access to for 2,500 business customers, per TechCrunch. Geared toward sole traders and small- and medium-sized businesses (SMBs), the accounts mark previously consumer-focused Monzo's entrance into the business banking space. The neobank's new businesses accounts will be offered via a tiered model: Business Lite is free to use, and offers both mobile and web access — the latter of which Monzo CEO Tom Blomfield told TechCrunch was a more in-demand feature than they had anticipated. Business Pro is a premium account which comes with a £5 ($6) monthly subscription fee. The account comes with features like "Tax Pots," which allow businesses to allocate a percentage of inbound payments in preparation for a future tax bill, integration with third-party accounting software like Xero, multi-user accounts, and in-app invoicing. The slower pace at which the accounts have been rolled out is seemingly a departure from Monzo's previous strategy of going for quantity over quality. In the early days of its 2015 launch, the neobank was more focused on the speed with which it got products to market: "We spread ourselves too thin and launched too early," Blomfield told TechCrunch. But having tested these business accounts with actual businesses and for the course of a year, the neobank seems well-positioned for success. Taking the time to ensure a quality offering is integral to building a sustainable business, as rushing to launch a suboptimal product could result in a costly retraction and relaunch, not to mention diminished customer trust. This happened with Monzo's premium consumer accounts, which it shuttered just five months after launching due to customer backlash, and relaunched several months later. Expanding its product line also invites more competition for Monzo — but its multitiered approach could position it for sustainable growth. The UK SMB neobank space is highly competitive, with players like OakNorth, Tide, and Starling, the last of which has grown its SMB marketplace to 24 integrations from other providers, for example. But Monzo's multitiered subscription model could help it gain ground in the space by appealing to the widest possible swath of prospective clients, from individual freelancers who may opt for the free account, to more established SMBs that can benefit from the more advanced integrations of the paid account. Additionally, offering a paid account can give Monzo the ability to generate consistent revenue through the subscription fee. Want to read more stories like this one? Here's how to get access: Business Insider Intelligence analyzes the banking industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. >> Check if your company has BII Enterprise membership access. Sign up for the Banking Briefing, Business Insider Intelligence's expert email newsletter tailored for today's (and tomorrow's) decision-makers in the financial services industry, delivered to your inbox 6x a week. >> Get Started Explore related topics in more depth. >> Visit Our Report Store Current subscribers can log in to read the briefing here. Join the conversation about this story »
This story was delivered to Business Insider Intelligence Banking Briefing subscribers earlier this morning. To get...This story was delivered to Business Insider Intelligence Banking Briefing subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. Lloyds Banks and Halifax's mobile banking apps were hit with outages late last week, locking users out of their accounts, per Metro. Customers received error messages when attempting to log into their accounts. The outages impacted 1,200 Halifax customers and 800 Lloyds customers, who received error messages when attempting to log in to their accounts — and many of whom took to Twitter to express their outrage. Despite the small scale of these outages, they could disproportionately affect customer satisfaction because they happened during a time of heightened need for digital banking access: A potential drop in branch visits due to the coronavirus could lead to a higher dependency on digital channels. The pandemic could reduce branch visits by forcing banks to temporarily close locations or reduce their hours — as in Hong Kong — or customers might not feel comfortable coming into branches amid concerns over the virus's spread. But there could be a spike in usage of digital banking channels and call centers globally as customers will still need to access to fund transfers, make deposits, and check their balances. The net effect could result in those channels becoming the primary channel for banking for a large portion of customers for the foreseeable future, and not just in the UK, but globally. In fact, even setting aside the coronavirus, UK consumers are already largely dependent on digital banking channels. Seventy-two percent of UK consumers are doing the majority of their banking online, according to a Marqeta study. An outage during critical times could stand out to those customers and potentially influence them to switch providers, making communication and increased transparency of the utmost importance. While this could be an opportunity for discovering new features, banks have to make sure they can handle a spike in volume. And for people who might be new digital users, it's important for banks to simplify their experiences for those first-time users by offering educational materials to instruct customers on how to make the most of nonbranch channels to manage their funds. Further, banks need to be prepared to accommodate a higher volume of digital users though online or phone channels. But those who can't handle an uptick in volume, or have an outage during this time, could risk facing major backlash. Want to read more stories like this one? Here's how to get access: Business Insider Intelligence analyzes the banking industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. >> Check if your company has BII Enterprise membership access. Sign up for the Banking Briefing, Business Insider Intelligence's expert email newsletter tailored for today's (and tomorrow's) decision-makers in the financial services industry, delivered to your inbox 6x a week. >> Get Started Explore related topics in more depth. >> Visit Our Report Store Current subscribers can log in to read the briefing here. Join the conversation about this story »
THE DIGITAL HEALTH COMPETITIVE EDGE REPORT: How the big four US insurers rank on digital feature awareness — and what it means for customer satisfaction (AET, ANTM, CI, UHC)
This is a preview of THE DIGITAL HEALTH COMPETITIVE EDGE REPORT from Business Insider Intelligence. This report...This is a preview of THE DIGITAL HEALTH COMPETITIVE EDGE REPORT from Business Insider Intelligence. This report is exclusively available to enterprise subscribers. To learn more about getting access to this report, click here. As digital permeates every corner of the US healthcare sector, the big four US insurers — Aetna, Blue Cross Blue Shield, Cigna, and UnitedHealthcare — have padded their health plans with digital tools that customers can use to seek medical advice, navigate costs, or contact customer service. And several of these features are considered must-haves for respondents to our proprietary survey who are US Tech Early Adopters, or those who identified as either a first adopter or early adopter of new technologies. But a notable share of US Tech Early Adopters who hold plans with the big four US insurance companies aren't aware that their health plans offer various digital features, creating a window of opportunity for US health insurers to shore up their digital strategies to create a superior customer experience and solidify their market footing in the face of tech-focused entrants. And because we expect that digital will become synonymous with the US health insurance experience over the next decade, insurers that develop a robust digital strategy now will be in a good position to become market leaders. In The Digital Health Competitive Edge Report, Business Insider Intelligence uses primary research to rank the big four US health insurers — Aetna, BCBS companies, Cigna, and UnitedHealthcare — on awareness of their digital features among customers who are US Tech Early Adopters. By measuring member awareness of digital insurance features, we can help pinpoint areas where the big four US payers can improve their digital strategies. This report can also serve employers in selecting a health plan to contract with, as it will detail consumer awareness of features they may deem important to offer their workers. The companies mentioned in this report are: Aetna, Anthem, Apple, Berkshire Hathaway, Blue Cross Blue Shield Association, BlueCross BlueShield of Tennessee, BlueCross BlueShield of Western New York, Bright Health, Cigna, Clover Health, Devoted Health, Doctor On Demand, Fitbit, Garmin, Humana, JPMorgan Chase, MDLive, Oscar Health, Samsung, UnitedHealthcare, UnitedHealth Group. Here are some of the key takeaways from the report: Digital is a nascent but growing part of the US health insurance customer experience. US Tech Early Adopters already rate some digital insurance features as must-haves, suggesting digital will become a more important determinant of customer satisfaction. A significant proportion of US Tech Early Adopters aren't aware that their health insurance plan includes high-value digital features. There's an opportunity for the big four US insurers — Aetna, BCBS, Cigna, or UnitedHealthcare — to emerge as digital leaders and improve customer satisfaction. Growing pressure from external threats should amplify the sense of urgency for payers to move on strengthening their digital services. In full, the report: Uses primary research to rank the big four US health insurers on awareness of their digital features among customers who are US Tech Early Adopters. Identifies which digital insurance features respondents value most. Helps pinpoint areas where incumbent US insurers can improve their digital strategies. Evaluates which digital health insurance features are likely to be most in-demand over the next 10 years. Interested in getting the full report? >> Check to see if you already have access through your companyJoin the conversation about this story »