Summary
A recent study finds that bank loyalty is no longer as strong as it once was. This decline in loyalty underscores the growing importance for financial institutions to enhance their digital offerings, particularly cyber security, in order to retain long-term customers.
New research on the British public’s opinion on banks has found that Brits are unlikely to remain loyal to one bank. The study, conducted by UserTesting, a SaaS leader in experience research and insights, found that 90% of Brits now have accounts with multiple banks. ‘Across Germany, France, and the UK, we’re seeing a pattern of customers being broadly satisfied with their bank’s current offerings, but equally being very easily convinced to switch for better monetary or digital offerings. This requires banks to evaluate their offering on an ongoing basis; ensuring all touchpoints are seamless, and that you’re proactively identifying and rectifying any issues or friction for customers before they become full-blown issues can ensure your current customers remain loyal.’ said Caroline Vize, Director of UX Research Partners at UserTesting.
Whereas competitive interest rates and loyalty bonuses were once the main ways to ensure customer loyalty, the shift towards digital banking experiences has made cyber security a more definitive factor in choosing a bank. Banking is increasingly dominated by digital experiences. UserTesting’s survey also found over nine in 10 (93%) regularly utilising their bank's mobile app, while only 22% make visits to in-person branches. People are no longer content with staying at a bank simply because they’ve been with them for a long time or because their parents used the same bank. Now, customers prioritise strong digital offerings, including robust cyber security to protect their sensitive financial and personal information. In this new landscape, a frictionless and seamless digital experience is no longer just about ease of use but also includes built-in cyber security features. These may include nudges that encourage positive behaviours, such as saving more, or warnings about high-risk activities, like sending money to unknown individuals. These proactive measures not only provide a smooth user experience but also ensure that customers feel protected, making cyber security a crucial factor in their choice of banking provider.