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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