A New Report from SumUp Reveals UK Residents’ Banking Preferences

As digital technology continues to reshape the financial landscape, banking preferences are shifting in significant ways. Traditional bank branches, once the cornerstone of personal finance, are becoming less central to people’s banking needs. 

To explore how preferences are changing when it comes to their banking habits, SumUp conducted a nationwide survey, gathering insights from UK consumers about banking. The findings offer valuable insights into whether people would consider switching to a fully digital, branchless bank, how often they visit their bank branches, and the changes they have noticed in services offered.

Would Brits consider switching to a fully digital, branchless bank? 

With the rise of mobile banking technology, a growing number of digital, branchless banks are emerging across the UK, offering a seamless and convenient banking experience. As traditional bank branches become less essential for everyday banking, would people consider switching to a fully digital bank? 

For 18% of people in the UK, the move to a fully digital bank has already been made, and an additional 23% are open to making the switch, saying that they can see key advantages such as greater convenience and lower fees. However, a quarter (25%) expressed their interest but would require more information before committing to a digital-only bank. Whilst on the other hand, a third of people (33%) remain attached to traditional banking, preferring the security and familiarity of physical branches. 

Banking preferences vary across age groups. Among those aged between 18 and 24, over a quarter (29%) have already adopted a fully digital bank, with another 29% considering the switch, drawn in by its convenience. Similarly, 27% of those aged between 25 and 34 are already using a digital-only bank, and over a third (36%) are seriously considering the transition. For younger generations, the appeal of quick, flexible, and cost-effective banking is clear, reflecting their preference for convenience and tech-savvy services.

How often are people  visiting their bank, and how are services changing?

As digital banking offers faster, more convenient services, the need to visit physical branches has diminished for many consumers. But, are people still heading to their local banks, or has the shift to online banking made in-person visits a thing of the past?

Over a quarter of people (29%) haven’t visited a bank branch in over a year, opting instead to do all of their banking online. For 22%, while they have visited a branch in the past year, trips are infrequent. A further 18% said that they have visited in the last six months, however, it is usually for special services such as resolving issues or seeking advice. Meanwhile, 23% have visited within the last month for routine transactions like deposits or withdrawals. Surprisingly, while 8% of people use ATMs regularly, they have never stepped foot inside a bank branch. 

As fewer people visit bank branches, over half (52%)  have noticed changes in the services available at branches in their area. A third (33%) of people have seen branches close locally, which they feel has impacted their banking experience, whilst 12% have observed a reduction in in-person services at branches, though they haven’t noticed any major changes. Over a third (34%) said that they do all of their banking online, so any changes to banking hasn’t significantly affected them, only 19% of those said they had noticed changes despite not visiting branches.

How are Londoners’ behaviours changing? 

London has long been a trendsetter when it comes to consumer behaviour, with its thriving economy making it a key way to measure changes in the wider market. As banking preferences continue to evolve, Londoners are at the forefront of adopting new technologies and banking methods. 

Nearly a quarter (23%) of Londoners are already using a fully digital bank, and a larger proportion compared to the UK overall—32%—are considering making the switch, drawn by the advantages of digital banking. An additional 24% said they would consider it but would need more information before committing. In comparison to a number of northern cities, Londoners appear to have embraced digital banking much quicker, with only 6% of people in Bradford, 8% of Kingston upon Hull, and 10% of York already making the switch to digital banking. 

Londoners, however, are visiting bank branches more frequently than the rest of the UK, with only 20% claiming to do all of their banking online. Over a quarter (28%) of Londoners have visited their bank in the past month for transactions such as deposits, withdrawals, or transfers. Meanwhile, 23% have visited in the last six months for services like resolving issues or seeking advice. Additionally, 19% have visited a branch in the past year, but only on rare occasions.

Almost half (48%) of Londoners have noticed changes in the availability of services at their local bank branches, a third of which (33%) reported that many branches have closed in their area, significantly impacting their banking experience. While 22% haven’t noticed any closures, 11% have observed a reduction in in-person services being offered.

Nicolas Vrillaud, Marketing & Growth Leader at SumUp commented on the report, saying “At SumUp we’re passionate about creating a world where everyone can build a thriving business. Banking is an integral part of building and running a business, and unfortunately the way it’s delivered is often seen as a pain point by SMEs. We conducted this survey to better understand evolving banking preferences in the UK, and observed that whilst digital banking services adoption is increasing there is still a lot of work to be done to convince the majority of consumers and businesses to make the switch.”

For more information on banking preferences in the UK, please visit: https://www.sumup.com/en-gb/business-account/the-shift-in-banking-trends-in-the-uk/