Majority of customers say they'd consider switching banks to escape unreliable apps and shoddy customer service
LONDON, Nov. 12, 2024 /PRNewswire/ -- A new survey released today on customers' top frustrations with mobile banking reveals digital-only company Monzo is leading the app game - while the high street banks are falling short.
Today's digital-savvy users demand more from their banking apps and will consider switching banks to get it, according to a survey of 518 UK adults conducted by digital and AI transformation consultancy Futurice UK, with the majority prioritising a reliable, straightforward app experience and top-tier customer service.
While 30% of those surveyed were most satisfied with the Monzo app, followed by NatWest (15%) and Chase (14%), when asked which app causes them the most frustration, Barclays was named by 7% of respondents, followed by Nationwide (6%) and HSBC (5%).
Inadequate customer support topped consumers' list of frustrations - cited by 47% of respondents, followed by slow loading times (45%) poor user interface (44%) and limited app features (37%).
Over a third (34%) of respondents have five or more banking apps on their phones to handle everything from current, savings and mortgage accounts, to crypto and foreign exchange.
"Banking apps are critical touch points between banks and their customers," says Matthew Edwards, MD of Futurice UK. "People want to be on top of their finances and they need their banking apps to keep up. From easy in-app navigation to 24/7 customer service, these findings suggest that by failing to deliver consistently effortless digital experiences, banks are not meeting their customers' expectations."
Poor digital experiences erode loyalty
It's clear that a hassle-free digital experience is extremely important: a huge 70% of respondents said they were 'likely' or 'very likely' to switch providers for a more reliable mobile app.
Participants repeatedly mentioned apps crashing, having complicated layouts, taking a long time to load and being regularly unavailable (due to maintenance or updates) as key frustrations. Some described their interaction with the Barclays app as "slower" and "not user friendly," citing login issues and error messages. Meanwhile users criticised HSBC's app for requiring "constant" approvals for transactions which "takes too long."
Matthew Edwards says today's users are looking for the seamless interaction they're accustomed to from their other essential apps: "Banks and financial institutions should prioritise operational excellence in their digital platforms. This means ensuring the customer journey is smooth from login to transaction, and that apps are equipped to handle peak demand without compromising speed or user experience. Investments in backend infrastructure, load management and interface design are no longer optional, they are prerequisites for retention."
Customer support - the new baseline for engagement
Another area of concern the Futurice survey highlights is customer service. Not having fast, accessible support was mentioned by many respondents as a problem. Seventy-one per cent said they were 'likely' or 'very likely' to consider switching banks for superior customer service while 67% would think about changing for 24/7 support.
Matthew Edwards comments: "Round-the-clock support isn't a luxury - it should be the new normal for banks wanting to retain their customers.
"AI-driven chatbots are useful for filtering common queries, but effective customer service needs a hybrid approach, with human agents also on hand for more complex issues."
Make it personal - standardised solutions are out
Other insights revealed by the Futurice survey include respondents being annoyed and underserved by limited in-app features and a one-size-fits-all approach. Many want tailored advice, budget tools and money pots for an individualised banking experience: 66% would consider switching to a provider with more innovative app features, while half would switch for personalised financial advice.
Monzo, which came out top in terms of overall satisfaction, was praised by users for the ease of directing money into different pots, whether saving for something specific or tracking spending. Participants said Monzo's pots "helps me budget" and " feel in control" adding that the app "offers more than just banking."
"Banks can deploy advanced analytics and AI to provide bespoke financial advice, spending insights and savings tools that align with customers' unique circumstances," says Matthew Edwards. "Embracing personalisation means putting the customer at the centre of the product, enhancing customer satisfaction, deepening engagement and driving loyalty."
Additionally, according to the survey, ethical banking is becoming a mainstream expectation. Matthew Edwards says: "It's no longer a 'niche' concern; 48% of respondents would 'likely' or 'very likely' switch to a provider that follows ethical banking practices. Customers are actively seeking banks that reflect their values around sustainability, fair business practices and social responsibility. Banks that communicate their commitment to sustainability and fair practices stand to build stronger emotional connections with their customers."
Meanwhile, security remains a crucial concern for many, with 68% saying they were 'likely' or 'very likely' to switch for enhanced security features.
"It's clear that people expect more from their apps"
While higher interest rates and lower fees will always be a draw, the Futurice survey provides compelling evidence that user expectations in digital banking are evolving, and financial institutions must adapt quickly to stay competitive.
"Financial institutions need to stay ahead of the curve and respond to what their digital-first customers value," says Matthew Edwards. "Personalisation, seamless interactions and 24/7 support are critical factors in retaining and attracting bank customers, along with robust security and ethical practices.
"It's clear that people expect more and more from their apps, and these insights can provide a roadmap if banks are willing to listen. Fail to address these areas, and you risk falling behind."
To download the survey insights report click here.
Futurice is a digital and AI transformation consultancy, helping clients to solve their biggest challenges and empowering them to make a positive impact on the world.
We design, develop and scale digital products and services across many industries. Our goal is to deliver measurable, sustainable outcomes through close and business-focused collaboration with our clients. Over the last few years, we've helped major banking, finance, automotive, mobility and logistics clients reach the forefront of the data and digital transformation.
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