The majority of UK consumers want greater control and flexibility over their financial products and prefer digital banking, new research from Yobota has revealed.
The London-based technology company commissioned an independent survey among 2,003 UK adults. It found that 58% of banking customers believe they should have more power to renegotiate or change their financial accounts and products.
A third (33%) of consumers are frustrated by having to choose between generic off-the-shelf financial products. This figure rises to 43% among those aged between 18 and 34.
Almost a fifth (19%) are currently stuck with financial accounts or products that are no longer suitable for their personal circumstances. One in four (26%) people with a personal loan say the product is no longer a good a fit for them compared to when they acquired it – 18% of mortgage customers and 14% of people with life insurance share this view.
Half (49%) of UK adults would like their bank to offer more flexible products that evolve according to customers’ changing needs, with 52% saying COVID-19 has exposed the need for more responsive banking products for when people’s financial situations suddenly shift.
Yobota’s research also showed that 30% of people feel banks make it too difficult – or impossible – to get out of financial products. Slightly more (34%) also criticised how complicated and time-consuming it still is to open a new account or secure a financial product.
However, 62% of consumers did note that technology has made it easier over the past five years to change between different banks, accounts and products. The majority (57%) of Britons now prefer to manage their financial affairs via digital banking rather than in-person or over the phone.
Says Ammar Akhtar, CEO of Yobota:
“Consumers, particularly Gen-Z and latter-day millennials, are increasingly demanding more agile, responsive and personalised banking services. The research illustrates that people are increasingly unlikely to tolerate being left with generic financial products in the long-term, and banks must take note of this.
“It is a trend that has been accelerated by COVID-19 and the financial disruption it has caused. Now more than ever, banks must embrace tech to deliver more sophisticated, adaptable products. Thankfully, many already are – but those who don’t respond quickly will risk losing customers to those who have.”