The county’s consumers still prefer traditional ‘bricks and mortar’ banking outlets despite the growing number of mobile banking applications for smartphones and tablets, according to new research from business and financial advisers Grant Thornton.
A survey of more than 1,500 UK respondents, including a proportion from Northamptonshire, found the majority (48%) of consumers rated banking branches as their channel of choice, followed closely by online platforms (40%), with just 5% opting for mobile banking applications.
The poll also found that consumers’ trust in banks remains relativel
The county’s consumers still prefer traditional ‘bricks and mortar’ banking outlets despite the growing number of mobile banking applications for smartphones and tablets, according to new research from business and financial advisers Grant Thornton.
A survey of more than 1,500 UK respondents, including a proportion from Northamptonshire, found the majority (48%) of consumers rated banking branches as their channel of choice, followed closely by online platforms (40%), with just 5% opting for mobile banking applications.
The poll also found that consumers’ trust in banks remains relatively high, with 86% saying they have confidence in their banks to rectify problems quickly and fairly and the majority (91%) reporting satisfaction or better with their banks.
The survey also identifies a lack of interest in switching between financial services providers. Only 13% of respondents said they were considering changing their bank; with the remaining 87% content with their current providers.
Grant Thornton’s research also suggests that new rules introduced by the UK’s Payment Council in September 2013 to make switching between financial service providers easier have not played a major role in reshaping the retail banking market. Just 2% of survey respondents said they had changed providers as a result of the ‘seven day switching guarantee’.
Kevin Gale, practice leader at Grant Thornton’s Northampton office, commented: “The research overwhelmingly shows that demand for ‘traditional’ banking facilities remains high, despite many predicting the ‘digital revolution’ would completely negate the relevance of bricks and mortar outlets.
“Consumers are still keen to carry out their banking needs face-to-face particularly for milestone events such as taking out a mortgage or a large loan.
“With many of the established high street banks now closing down their branches, and up-and-coming ‘challenger banks’ entirely avoiding having a physical presence, this could leave a significant gap between expectations and realities for consumers.”
Grant Thornton’s research also shows that cash transactions remain a dominant force in payments, with a significant majority (89%) preferring to pay with cash for everyday items rather than via mobile payments.
Kevin Gale continues “The mobile wallet, though still in its infancy, has a long way to go in fully capturing consumers’ interest.
“However, the conditions for a ‘game-changing’ mobile payments system to be introduced still exist; particularly if a mobile wallet comes to market which can serve as an link between consumers’ accounts and payment options.
“The ongoing transformation of the UK retail banking sector, which started a few years ago with the financial crisis, explosion in smartphone adoption and more recent regulatory pressures, is having a profound impact on how financial institutions ensure they remain relevant and competitive.”