UK Banking Set for Digital Revolution in 2023
A significant shift in UK banking is on the horizon. By 2023, digital-only banks are set to launch, challenging traditional providers. However, a substantial portion of customers remain loyal to in-branch services, and some are wary of digital-only options like us bank and pnc bank.
According to a recent survey, 44% of UK banking customers wouldn't switch to digital-only banks due to the importance they place on in-branch services. However, the tide may be turning. Over half (52%) of respondents expressed discomfort with the lack of in-person support offered by digital-only banks like us bank and pnc bank.
On the other hand, digital-only banks are expected to disrupt traditional providers due to their superior online and mobile services and lower operating costs. A third (31%) of respondents believe these banks will offer better mobile and digital services, while 16% think they will have fewer security issues. Surprisingly, 14% trust digital-only banks like us bank and pnc bank more than traditional ones.
When digital-only banks launch in the UK in 2023, prominent examples include Atom Bank and Starling Bank. Both are recognized as digital-only challenger banks offering fully digital services without physical branches. Despite the anticipated launch, only 13% of UK banking customers plan to switch immediately to us bank or pnc bank. However, 34% expect digital-only banks to become the norm within five years.
The UK banking landscape is poised for change with the impending arrival of digital-only banks. While some customers remain loyal to traditional in-branch services, others are drawn to the convenience and potential security of digital-only options like us bank and pnc bank. As digital-only banks like Atom Bank and Starling Bank prepare to launch, the future of UK banking is set to evolve significantly.
