These are the top 5 UK financial institutions ranked by the mobile banking features consumers value most
This is a preview of Insider Intelligence's second annual UK Mobile Banking Competitive Edge Study, available exclusively to enterprise subscribers. In addition to mobile banking coverage, Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Banking industry. You can learn more about becoming a client here.
The UK's top banks are in a fierce battle to offer the most innovative mobile banking features to current and prospective clients, as the coronavirus pandemic has shifted more customers online.
In Insider Intelligence's second annual UK Mobile Banking Competitive Edge Study, exclusive data shows that 68% of all UK respondents surveyed use mobile banking. Of those that use mobile banking, 86% said mobile was their primary banking channel and 62% said they would even change banks if the mobile banking experience fell short. UK banks are cognizant of this large base of mobile-oriented customers and are expected to spend a staggering £14 billion ($17.5 billion) on technology in 2020. For example, in its latest annual report, NatWest Group spoke of its continued investment on mobile and online channels as part of its digital-first strategy, and said this includes "releasing new mobile app features to help customers create savings goals, lock and unlock their debit card, and take control of their spending." In the UK Mobile Banking Competitive Edge Report 2020, we take a deep dive into this trend by benchmarking the 10 largest digitally focused financial institutions (FIs) offering zero-fee current accounts in the UK on whether they offer the mobile features customers say they care most about. This 74-page report draws on two exclusive data sources: a benchmark of the 10 largest UK FIs by 41 mobile banking 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 ordering a replacement card, they should focus their attention on. On the other hand, it also spotlights which features should be deprioritized, by showing that conversing with a conversational assistant has minimal consumer demand, for instance. Here are a few key takeaways from the report:
NatWest has the most desirable mobile banking feature set in the UK. The bank offers industry-leading digital money management and alerts capabilities. Barclays came second with competitive security and transfers features, while Lloyds followed closely behind, rounding out the top three. Security features were the No. 1 priority for consumers. For example, our study's top two most in-demand features out of a list of 41 — the ability to order a replacement card in-app and put a temporary hold on a credit or debit card — fell under this category. Mobile account management features are also highly sought after by the UK mobile banking users in our study. This section includes capabilities that allow customers to conveniently set their preferences and handle important housekeeping tasks. Banks could stand apart from competitors by meeting strong customer demand for traditional account management features, such as the ability to activate a new debit or credit card and select paperless statements — something only half of banks studied currently do. Customers also crave digital money management features. This section includes features that empower users to improve their financial health, including the ability to view recurring charges and set spending limits for their debit or credit card. The ability to cancel subscriptions, such as for Netflix, was called "extremely valuable" by 38% of respondents and was the section's most in-demand feature.
In full, the report:
Shows how 41 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 digitally focused UK FIs 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 exclusively to Insider Intelligence enterprise clients. In addition to our UK Mobile Banking Competitive Edge Study, Insider Intelligence publishes a wealth of research reports, charts, forecasts, and analysis of the Banking industry. You can learn more about accessing all of this content here. Insider Intelligence's Mobile Banking Competitive Edge study includes: Barclays, Co-operative Bank, HSBC, Lloyds Banking Group (Lloyds, Halifax, and Bank of Scotland), Metro Bank, Nationwide, NatWest Group (NatWest, RBS), Santander, TSB, and Virgin Money. The survey data for this report comes from Insider Intelligence's UK Mobile Banking Competitive Edge Survey 2020, which was fielded between May 16, 2020 and May 26, 2020 — 1,100 UK respondents were asked to rank the value of 41 innovative mobile banking features. Respondents to the survey were mobile banking users selected to align with the UK population on the criteria of gender, income, and age. Join the conversation about this story »
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THE DIGITAL BANKING ECOSYSTEM: These are the key players, biggest shifts, and trends driving short- and long-term growth in one of the world's largest industries
This is a preview of Digital Banking Ecosystem research report from Business Insider Intelligence. Purchase this report. Business...This is a preview of Digital Banking Ecosystem research report from Business Insider Intelligence. Purchase this report. Business Insider Intelligence offers even more fintech coverage with Banking Pro. Subscribe today to receive industry-changing finance news and analysis to your inbox. The banking industry is in the grips of an identity crisis. Leaders of the world's largest banks — such as Citi, BBVA, and Goldman Sachs — have begun describing themselves as technology companies with banking licenses. However, this description is still aspirational. Executing the vision will require billions of dollars in investments, the restructuring of teams, a reimagining of the entire banking technology stack, and the adoption of a far more customer-centric business view. The stakes of failing to transform are high: Accenture projects that 35% of all bank revenues could be at risk from more tech-savvy competitors like fintechs as soon as 2020 for incumbents that fail to up their game. As a result, a wave of digital transformation is now sweeping the banking industry, as incumbents shore up against consumer demand and competitive pressures. Major banks have already announced multibillion-dollar, multiyear digitization projects: By 2021, global banks' IT budgets will surge to $297 billion, up 14% from $261 billion in 2018, according to Celent. Many incumbent banks are opting to decrease their branch budgets and networks and reinvest their resources in digital channels such as mobile instead to cater to current consumer preferences, and are enlisting the help of tech-savvy software vendors to modernize their tech stacks from top to bottom as part of this process. In the Digital Banking Ecosystem report, Business Insider Intelligence explores the incumbent banking landscape as a whole, and the third parties banks are calling on to help their transition to digital. We then take a closer look at the three biggest drivers for incumbent banks' digitization push: digital-native competitors like neobanks and Big Tech companies; changing consumer behaviors and banking channel preferences; and a growing array of cybersecurity threats. Lastly, we examine what incumbents are already doing today to transform themselves into digital-first organizations to compete in a customer-centric, data-driven global economy, and how they are learning to meaningfully measure the progress of their transformations. The companies mentioned in this report include: Acronis, Amazon, Ant Financial, Apple, Ario, Banco Galicia, Bancorp, Bank of America, Bank of England, Barclays US Consumer Bank, BBVA, BNP Paribas, Caixa Geral de Depositos, CaixaBank, Capital One, China Construction Bank, Citigroup, Citizens Bank, Compliance.ai, CSI, Dave, Detroit Fintech Bay, Deutsche Bank, Diasoft, Emirates NBD Bank, Finastra, Finn AI, Finxact, First Direct, FIS, Fiserv, Flagstar Bank, Forcepoint, ForSee, Forward Networks, Geezeo, Gemalto, Goldman Sachs, Google, Grab, Hello Bank, Help Systems, HotJar, HSBC, IBM, ICBC, Infosys, ING, ING Direct, Intesa Sanpaolo, Jack Henry, JPMorgan Chase, Kenna Security, Lloyds Bank, Lyft, Midwest Bank, Mission Bank, Monzo, N26, Nationwide, NatWest, nCino, ObserveIT, OnDeck, Openbank, Osano, Personetics, PNC, RBS, Reciprocity Labs, Saga, Santander, Sberbank, Square, Starling Bank, Strands, Tanium, Temenos, Tencent, Thomson Reuters, Thought Machine, Tink, TSB, Uber, United Income, US Bank, Wells Fargo, Zelle, and Zopa. Here are some of the key takeaways from the report: Incumbent banks are intensifying their digitization efforts in the face of changing consumer demands and growing competitive pressures. The number of US consumers considering switching banks in the next 12 months increased by 86% from a year before, from 6.9 million to 11.9 million, per Resonate, with consumers citing the need for better digital banking services and more personalized products and tools as major motivators. Meanwhile, tech giants like Google and Amazon are poised to grab up to 50% of the $1.35 trillion in US financial services revenue from incumbent banks, per McKinsey, leveraging their tech expertise to lure away customers. Legacy channel usage is steadily dwindling, while digital channel usage is firmly on the rise. This turn to digital is being accelerated by younger, tech-savvy generations like millennials and Gen Zers quickly becoming banks' largest addressable market. Once the most widely used banking channel in the US, branch use will drop at a compound annual growth rate (CAGR) of -2.01% between 2019 and 2024, per Business Insider Intelligence projections. Meanwhile, mobile banking, the least-used banking channel in 2008, is expected to grow at a CAGR of 2.83% between 2019 and 2024, the highest among all channels. To digitally transform, banks need to join forces with partners, enemies, and frenemies alike. Vendors will be key to the modernization of banks' IT, with specialists catering to each layer: 81% of banking executives surveyed by Finextra and the Euro Banking Association cited working with partners as the best strategy for achieving digital transformation goals. Banks' growing IT budgets reflect their changing priorities: By 2021, global banks' IT budgets will surge to $297 billion, up 14% from $261 billion in 2018, according to Celent. Banks' digital transformations are already well under way, and incumbents are making massive changes to the way they operate and plan for the future to compete in a digital economy. They're doing this by embracing digital-ready innovation models; adopting new business models like open and direct banking; and reorienting their tech stacks around the digital customer experience. In full, the report: Outlines the incumbent banking landscape and its components, and the structure of the banking tech stack and the vendors supplying each of its layers. Explains the biggest drivers behind banks' digital transformations, especially the rise of tech-savvy competitors, shifts in consumer behaviors, and a growing number of cybersecurity threats. Highlights the steps banks are already taking to turn themselves into digital-first, data-driven, and customer-centric organizations. Evaluates the progress incumbents have made towards digitization, and how deeply they've embedded themselves in the emerging cross-industry digital banking ecosystem. Interested in getting the full report? Here's how to get access: Purchase & download the full report from our research store. >> Purchase & Download Now Sign up for Banking Pro, Business Insider Intelligence's expert product suite tailored for today's (and tomorrow's) decision-makers in the financial services industry, delivered to your inbox 6x a week. >> Get Started Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships Current subscribers can read the report here. Join the conversation about this story »
TRANSFORMING USER EXPERIENCE IN BANKING: Here are the strategies winning financial institutions are using to deliver a superior user experience
This is a preview of the Business Insider Intelligence Transforming User Experience In Banking research report....This is a preview of the Business Insider Intelligence Transforming User Experience In Banking research report. Purchase this report here. Business Insider Intelligence offers even more banking coverage with our Banking Briefing. Subscribe today to receive industry-changing banking news and analysis to your inbox. As digital channels become a more critical part of the overall banking journey, banks' design teams need to strategize on how best to create user experiences (UX) that resonate with their customers. A strong UX enables banks to deliver a simple, intuitive, and frictionless digital banking experience. A superior UX can also help banks improve customer satisfaction and bring in new customers. Offering a wide range of in-demand mobile banking features, for example, can satisfy existing customers and drive bank selection among new ones — but only if these features are designed and implemented well: JD Power found that customer satisfaction was negatively impacted across both online and mobile channels by the flood of complex and hard to understand features that are common in banking apps today, per an analysis from its 2019 customer satisfaction ratings. The risk of not delivering a solid UX strategy is high — slower-moving banks face the threat of fintechs and big tech firms that boast a great UX as their main competitive advantage. Fintechs' excellently designed apps are pleasing to the eye and simple to navigate. Meanwhile, leading cross-industry players like Amazon and Google have long raised the bar for digital experiences within their core services — and as they venture into finance, they join fintechs in threatening legacy FIs' established market positions. Large financial institutions (FIs) are already focusing on UX design as they reshape their organizations by enhancing their digital channels, and smaller ones can learn best practices from these early movers to inform their own UX strategies. In Transforming User Experience In Banking, Business Insider Intelligence looks at winning UX design strategies employed by leading banks to reveal how other FIs can best capture the UX opportunity. We conducted exclusive interviews with nine major FIs to examine their UX teams in detail, offer insight into their approach to designing UX, and illustrate winning strategies for delivering a superior UX. Their strategies highlight the need to create multidisciplinary teams that place customers' needs and desires at the center of design initiatives, as well as the importance of utilizing a UX design methodology to deliver successful propositions in a timely manner. The banks interviewed in the report are: Bank of America, BBVA USA, Capital One, DBS Bank, Goldman Sachs, HSBC, JP Morgan, Lloyds Banking Group, and U.S. Bank. Here are a few key takeaways from the report: FIs should put customers at the center of their design initiatives by involving them in all stages of the process to ensure maximum uptake of their UX initiatives. They should use an established UX design methodology — like Design Thinking or Double Diamond — to zero in on the best solutions to users' problems. FIs should create multidisciplinary design teams with a broad range of talent and expertise to develop meaningful experiences more efficiently. UX design teams should in turn collaborate with other teams and senior leaders to identify solutions that account for user demands, banks' business needs, and what is technologically feasible. Although the majority of customer interactions are happening digitally, FIs shouldn't neglect physical channels when designing UX, as the customer experience often still involves these channels. FIs need to find the right tools to measure the success of their UX initiatives to better link UX to business outcomes. In full, the report: Identifies the UX oppportunity and provides an overview of popular UX design methodologies that can by deployed by banks. Utilizes exclusive interviews with nine leading banks to show how different FIs structure UX teams, approach UX design processes, and measure UX to link it to business outcomes. Helps banks identify strengths and weaknesses in their own UX strategies by providing insights on winning strategies for designing a superior UX. Interested in getting the full report? Here's how to get access: Business Insider Intelligence analyzes the banks industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. >> Check if your company has BII Enterprise membership access to the full report 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 Purchase & download the full report from our research store. >> Purchase & Download Now 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 »