NEWSROOM eMarketer's latest news, announcements, and media resources.

Lloyds Banking Group tops UK mobile banking benchmark ranking 

Over 22 million adults in the UK are projected to bank on their smartphones in 2021 

  

Digitization is rippling across the UK banking landscape, turning up the pressure on financial services providers to support distinctive mobile features. Insider Intelligence forecasts that 46.0% of the UK’s adult population will be smartphone banking users in 2025. By that same year, 39.3% of the population will hold at least one account at a digital-only bank.

 

For banks and building societies operating in the UK, the challenge to stand out to prospective customers—who are increasingly using mobile banking—has never been greater. A new benchmarking study reveals that among the top 10 financial institutions in the UK, one provider leads the pack with its set of emerging mobile features: Lloyds Banking Group.

 

This finding comes from Insider Intelligence’s newly released, third annual UK Mobile Banking Emerging Features Benchmark report. The study ranks the 10 largest UK banks and building societies by assets according to their innovative mobile banking capabilities. Its criteria include 41 of the year’s most cutting-edge mobile features, selected to help providers tap into customer demand and differentiate themselves from their competitors. 

 

The study uses a unique, data-driven approach. For each feature financial institutions offer, points are earned proportionate to the level of demand that UK mobile banking users express for the feature. This year, demand data was drawn from an Insider Intelligence survey, conducted in June and July 2021, of more than 1,100 UK adults who had used mobile banking. 

 

The latest study includes exclusive data from FinTech Insights by Scientia, a research platform that supplied vetted data on the feature sets of financial institutions, as well as video walkthroughs of key features. FinTech Insights captures hundreds of data points on the feature sets and user friction of over 100 financial services providers worldwide, including incumbent banks and challengers. 

  

In this year’s study, Lloyds Banking Group topped the list in overall banking app performance, followed by Barclays in second place and NatWest Group in third. Lloyds Banking Group secured its lead by ranking among the top three providers across four of the six categories of features considered in the study. 

 

Here are the leaders of each feature category:

 

  • Security and Control: Barclays and HSBC (tie)
  • Alerts: Virgin Money
  • Account Management: Lloyds Banking Group
  • Transfers: Barclays
  • Digital Money Management: NatWest Group
  • Customer Service: Lloyds Banking Group

 

 

 

“Mobile banking has redrawn the competitive battle lines in the UK. High-street banks, challengers, and major tech players are fighting for users and attention on smartphone screens,” said Tyler Brown, senior analyst at Insider Intelligence. “To attract customers with new features, banks should listen to an old source: the voice of the customer.”

 

The full report is now available to Insider Intelligence corporate subscribers.

 

Members of the media who are interested in reading the full report can reach out directly:

 

Corinne Weir

Public Relations Specialist

646-863-8814

cweir@insiderintelligence.com

 

Methodology 

 

Insider Intelligence’s UK Mobile Banking Emerging Features Benchmark examines the 10 largest financial institutions (FIs) in the UK by assets and ranks them according to their performance in a weighted scorecard. This year, the FIs received credit if their retail banking iOS apps offered, as of June 4, 2021, any of the 41 features we selected. Every feature in the study was assigned a unique point value based on the percentage of UK adult mobile banking users who called the feature “extremely valuable” in a survey we conducted between June and July 2021. The survey covered 1,134 UK adults (ages 18 to 75) who had used mobile banking, to gauge to what degree they valued the 41 features. 

 

Insider Intelligence analysts selected mobile features whose utility, rarity, or novelty can help FIs differentiate their mobile apps from those of their competitors. We solicited recommendations for new criteria from teams at the FIs included in the study, as well as from Scientia and its FinTech Insights platform. 

 

Analyzing more than 100 incumbent and entrant providers worldwide, the platform identifies which features they offer, displays videos of the features at work, and scores the user friction of those capabilities. Throughout the report, we feature a number of these videos, which document mobile journeys in the apps of the top UK banks, as well as other mobile feature data that FinTech Insights provided for our analysis. 

 

 

  

About Insider Intelligence  

  

Formed in 2020 from the union of eMarketer and Business Insider Intelligence (BII), Insider Intelligence aims to be the world’s leading research service focused on digital transformation. Insider Intelligence enables thousands of global industry leaders to understand the critical trends and developments affecting their business in the short and long term. Each year, Insider Intelligence produces nearly 300 reports, 7,000 charts, 1,500 newsletters, and 200 forecasts across Advertising & Marketing, Consumer Demographics, Social Media, Video, Mobile, Ecommerce & Retail, Telecom & Technology, Financial Services, and Digital Health. Insider Intelligence is owned by European media giant Axel Springer SE.

Posted on September 13, 2021.