New Report Uncovers Generational Shifts in UK 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? 

Whilst the survey suggests that overall, 66% of Brits are open to switching to a fully digital banking experience (18% have already switched, 23% are open to switching and see the advantages, while 25% would consider it with more information), attitudes towards the shift to digital banking vary notably by age group. 

Among 18 to 24-year-olds, 29% have already embraced a fully digital banking experience, with an additional 29% open to making the switch – attracted by its convenience and benefits that come with it. A further 25% in this age group said they would consider transitioning after receiving more information about the pros and cons. 

The trend continues among those aged between 25 and 34, with 27% already using digital-only banks and over a third (36%) seriously considering the move. For younger generations, the appeal of fast and flexible banking options is clear, reflecting their preference for convenience and tech-driven solutions. 

Interest remains strong in the 35 to 44 age bracket, where 22% have already made the switch, 30% are considering it based on perceived advantages, and 29% would be open to it with a better understanding of the benefits.

As expected, interest in fully digital banking declines with age. Among those aged 45 to 54, just 14% have made the switch to a branchless banking experience, a figure which remains consistent in the 55 to 64 age group. Adoption drops further among those aged 65 and over, with only 10% having transitioned away from traditional, branch-based banking. 

Have age groups noticed the changes in service availability at bank branches in their area?

The survey suggests that over half (52%) of people in the UK have noticed changes to in-person services or local branch closures. But, how does this differ by age?

Unsurprisingly, higher age groups, who are more likely to rely on traditional banking, have felt the impact of branch closures the most. Over a third (38%) of those aged between 45 and 54 reported local bank branches closing down, significantly affecting their banking experience. This trend remains consistent among older demographics, with 35% of those aged 55 to 64 and 41% of those aged 65 and over saying they’ve been similarly affected. 

In contrast and somewhat surprisingly, despite fewer people in older age groups fully embracing digital banking, many say they are unbothered by changes to local branches, or simply don’t notice them because they already manage most of their banking online. Nearly a third (32%) of those aged 45 to 54, 33% of those aged 55 to 64, and 28% of those aged 65 and over reported that branch changes had little to no impact on them due to their existing digital banking habits.

When it comes to younger age groups, significantly fewer reported being affected by bank branch closures. Just 18% of those aged 18 to 24 and 25% of those aged 25 to 35 said they had experienced an impact. This lower level of disruption likely reflects their greater convenience on digital banking and reduced dependence on in-person services. 

How often are people visiting their local bank branch?

More than a quarter of individuals aged 18 to 24 (29%) said that it has been over a year since they last visited a physical bank branch, as they manage all of their banking online. Interestingly, 14% of this age group revealed that while they occasionally use ATMs, they’ve never actually stepped foot inside a branch. 

A similar pattern is evident among those aged between 25 to 34, with 28% of those having not visited a branch in over a year, and 12% of those saying they have never been to one at all. These findings showcase a growing preference for digital banking among younger generations, who are leading the shift towards online-only financial services.

Surprisingly, even among older age groups, where a full adoption of digital banking remains lower, a substantial proportion have also moved away from in-person banking. Over a quarter (26%) of those aged 45 to 54, 31% of those aged 55 to 64, and 29% of those aged 65 and over haven’t visited a local bank branch in over a year, saying that they now manage their everyday banking online. An additional segment from each of these groups said they still do visit branches, but rarely. This included 22% of those aged 45 to 54, 23% of those aged 55 to 64, and 24% of individuals aged 65 and over.

These figures highlight a broader trend. While digital banking adoption varies by age, the decline in branch visits is widespread – suggesting that convenience, accessibility, and the rise of online alternatives are reshaping banking behavior across generations.  

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/