Digital Banking is an innovative way preferred by some but not all

Pure digital banking is gearing up for growth as the latest survey conducted by Accenture stated, "25 percent of UK consumers are ready to switch over to banking which is accessible through laptops and mobile devices only." Pure digital bank is a lower costing, speedy and private banking service, where a bank has no branches or call centers.

The pre-market study survey conducted by Accenture on UK current account customers revealed, "Customers in the age group of 25 to 34 are optimistic about the idea of branchless banking giving heads up to the idea." The diversification of data showed youngsters of the city would prefer sticking to branched banking as only 22 percent would consider digital banking.

Overall, the survey draws a rising growth chart in view of 3,600 UK current account holders using digital banking in everyday life. The study accumulated, "80 percent of customers went online at least once a month to interact with their banks, while monthly mobile banking usage surged to 27 percent of customers with reference to 21 percent in 2012 and 10 percent in 2011."

Though, the data shows rising use of online banking it limits the accuracy of figures as more and more banks are opening up every year. Consumers going to the banks increased by 6 percent as accessibility increased with rising number of branches. Most of the consumers traced at the banks included customers aged between 18 to 24. Fifty-four percent of the youngest group, said they visited their bank branch each month compared to 39 percent of the same group in 2012.

“This year’s survey underscores the growing complexity in how consumers want to interact with banks in the digital age,” said Peter Kirk, a managing director in Accenture’s Financial Services group.

“The youngest, most tech-savvy-customers still value face-to-face contact as they begin their life’s financial journey, whereas older customers who are further along in their work life are more open to a digital-only relationship. There is also evidence that some customers are not satisfied by their banks’ current digital offerings. This presents difficult questions for banks as they look to balance digital channels with costly branch networks and deliver relevant services.”

In either way, the banks willing to grow must diversify their services keeping high quality. In the growing digital world, banks must differentiate themselves and develop their niche to competitive advantages according to economists.  

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Investors confidence back to UK market, SMEs losing out 7 JULY 2014

The varied approach of Britain’s large companies and small firms towards investment, despite widespread confidence in the economic recovery is on the look for future changes.

Corporate's investment hunger is touching record highs the country. UK’s small-to-medium-sized enterprises (SMEs) showed reluctance to invest.

Confidence is hiking as revenues are boosting this year: micro businesses grew turnover by an average of £30,000 to date, small firms brought an additional £80,000, and medium-sized businesses hiked revenues by an average of £440,000.

SMEs should be bold with their capital now, to capitalise on the upturn or risk “missing the boat”, a survey report said. Around 47 percent of businesses leaders agreed stating, "if SMEs don’t invest in growth in second half of this year, they are on the way to losing out to competitors."

Cost-cutting is no longer a priority for the 112 CFOs surveyed, which include 31 from FTSE 100 companies and 37 from FTSE 250 firms. Just 26pc said that reducing costs was their main focus, down from 34pc last year.

An economist head said, “There is a sizeable minority of businesses, who are too cautious about the recovery showing reluctance to make significant investments now. These firms are falling behind their more ambitious peers.”

In contrast, larger businesses are increasingly bullish about their investment intentions. According to financial services firm Deloitte’s quarterly survey of chief financial officers, 65 percent of CFOs quoted, "now is a good time to take risk on their balance sheet," up from 45 percent during the same period last year, the second highest level on record.

“UK corporates are moving from balance sheet repair to growth and business spending is emerging as a driver of the UK recovery,” said Ian Stewart, chief economist at Deloitte.

A separate survey, released today, said that the Aim market fetched a total of £2.4bn this year. This is the highest sum in six years, indicating pre-recession confidence in investors.

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European Market's Thursday close and Friday moves 4 July 2014

Europe's main stock markets ended hiked sky high on Thursday. Optimism in the market attributed to the key interest rate decision announcement by the European Central Bank. U.S. jobs report for June pushed up the markets in the day.

Frankfurt's DAX 30 climbed 1.19 per cent to close at 10,029.43 points. London's FTSE 100 index of top companies ended higher 0.72 per cent at 6,865.21 while the CAC 40 in Paris surged more than 1.0 per cent to 4,489.88 points compared to Wednesday's closing levels.

In the U.S., futures cue a higher open on Wall Street. In the last session, stocks ended narrowly mixed showing little change, though the Dow and the S&P 500 set fresh record closing up as investors digested a positive reading on private sector employment.

Crude for August delivery is drowning $0.34 to $104.14 per barrel, while gold is fell $7.4 to $1323.5 a troy ounce.

The fundamental picture is optimistic for the bulls today. A mixed report of a strong payrolls print, lower unemployment rate, while the futuristic sub-components of the services ISM tapped at a solid rate.

EUR/USD is varied between Italian and Spanish bond yields over US treasuries. Although, one can argue the EUR could slip if the TLTRO funds make their way into the government bond market.  

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