Britons warm to digital banking but fear fraud
Digital and mobile banking is becoming increasingly popular in Britain due to its convenience and seamlessness. But while anti-fraud organisations say it’s safe, many Britons are concerned about the security of their money – presenting brands with an opportunity to market their safety credentials.
Britons are warming to digital banking. Four out of ten Britons use mobile banking apps regularly to access their accounts, as visits to branches have declined. In 2012 there were 309 million customer interactions with online banking apps, increasing to 1.4 billion interactions in the years to 2017 and forecast to hot over 3 billion by 2022. Correspondingly, interactions by telephone and web browsing fell by 17% from 81 million to 67 million interactions, and by 30% from 635 million to 567 million interactions, respectively. On the shift towards mobile banking, CEO of UK Finance, Stephen Jones says: "The customer desire for convenience is driving this shift towards an increasingly digital world. Mobile and online banking systems are easy to use, safe and reliable.”
Mobile banking’s convenience caters to people who are tired of long queues and lagged payments – likely to appealing to the 51% of online shoppers deterred by lengthy wait times. But even if mobile banking is relatively safe statistically, many Britons don’t feel that way – 30% don’t trust mobile apps as a secure way to manage their money. And as open banking regulations roll out, giving third parties access to Britons’ financial data, fears of financial cyber-crime are likely to intensify. In a 2017 Accenture report Britons expressed doubt about open banking’s effect on digital banking: 73% of Britons are reluctant to share personal financial information. As well as making mobile banking statistically secure, banking brands would do well to help people feel it’s secure
This article was first published by Canvas8