UK Digital Banking: Mobile Drives Steady Uptake, but Consumer Trust Remains an Issue - eMarketer
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UK Digital Banking: Mobile Drives Steady Uptake, but Consumer Trust Remains an Issue

eMarketer Report

By: eMarketer

Published: July 31, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Digital has transformed banking in the UK. But as physical branches continue to disappear from city and village high streets, the move to digital-only banking has been slower to catch on than other digital habits. Trust and security concerns—the main stumbling blocks—may represent an opportunity for traditional banks.

  • Hundreds of physical bank branches have closed in the UK this year, but while in-branch transactions tumble against a backdrop of rocketing digital banking use, few UK consumers are ready to move to digital-only services.
  • Such trepidation is illustrated by the UK’s somewhat meager standing when it comes to digital banking penetration rates in Europe. One study ranked the UK 11th by such a measure, trailing countries like Estonia and Finland.
  • Younger age groups are driving much of digital banking uptake, and the balance among these groups is tipping in favor of mobile activities. According to one 2017 study, 50% of young millennials in the UK had carried out a mobile banking action in the 30 days before polling—double the amount who did so through any other digital interaction.
  • Consumer trust in digital banking isn’t particularly high. As innovations like social banking, chatbots and artificial intelligence (AI) come to the fore, such concerns will need to be assuaged. Because traditional banks are already trusted partners, they are well-positioned to play a vital role in the move to digital.

"Roughly three-fifths of UK internet users view digital screen-based banking services as being convenient, but just over one-fifth consider them trustworthy."

Table of Contents

State of the Market: Digital Is Reshaping the Consumer Banking Landscape

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Digital Drilldown: Demographics, Devices and Behaviors

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Looking Ahead: Managing Consumer Expectations Alongside Digital Advancements

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20 charts are included in the full report:

UK Digital Banking: Mobile Drives Steady Uptake, but Consumer Trust Remains an Issue

Channel that UK Internet Users Find Most Convenient for Banking vs. Most Trustworthy for Communicating with Banks, Feb 2017 (% of respondents)

State of the Market: Digital Is Reshaping the Consumer Banking Landscape

Digital Activities of Consumers in Great Britain, April 2015-Feb 2017 (% of respondents)

Physical Branches Retain a Foothold

Channel/Location Where UK Internet Users Conduct Select Financial Activities, Dec 2016 (% of respondents)

Likelihood that Internet Users in Great Britain Would Consider Using a Digital-Only* Bank, Jan 2017 (% of respondents)

Advanced, but Not Leading, Behavior in the UK

Digital Banking User Penetration in Europe, by Country, 2011-2016 (% of internet users)

Digital Drilldown: Demographics, Devices and Behaviors

Demographic Profile of UK Digital Banking Users, Feb 2017 (% of internet users)

UK Consumers Who Use Digital Banking, by Demographic, Nov 2016 (% of respondents in each group)

Devices: Mobile Banking’s Rapid Rise

UK Consumers Who Use Digital Banking, by Device, Nov 2016 (% of respondents)

Internet Users in Europe* Who Use Digital Banking via Desktop/Laptop vs. Mobile**, by Age, Q4 2016 (% of respondents in each group)

Primary Channel Used by UK Internet Users for Banking Transactions*, by Generation, Dec 2016 (% of respondents)

Behaviors: Trust Is the Main Sticking Point

Channel that UK Internet Users Find Most Convenient for Banking vs. Most Trustworthy for Communicating with Banks, Feb 2017 (% of respondents)

Reasons that UK Internet Users Don't Use Mobile Banking, Feb 2017 (% of respondents)

Mobile Banking Activities Conducted by Mobile Phone Users in Select Countries, 2016 (% of respondents)

Finance Activities Conducted via Smartphone Among UK Smartphone Users, Q3 2016 (% of respondents)

Looking Ahead: Managing Consumer Expectations Alongside Digital Advancements

Primary Attitude Toward Using a Chatbot to Talk to a Company Among Chatbot Users in Select Countries, April 2017 (% of respondents)

Reasons that Chatbot Users Worldwide* Have Used a Chatbot in the Past Year, April 2017 (% of respondents)

Trust and Opportunity for Traditional Banks

Types of Companies/Organizations that UK Internet Users Trust with Their Personal Information, Oct 2016 (% of respondents)

Organizations that Mobile Banking App Users in Great Britain Would Trust to Provide a Mobile App to Manage Their Financial Accounts/Services, Oct 2016 (% of respondents)

UK and US Internet Users Who Would Be Upset to Know that Marketers Possessed Select Data About Them, Feb 2017 (% of respondents)