Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Consumers and Technology in Financial Services - UK - October 2013

“As ownership of smartphones, and tablet computers continues to rise, more consumers will be using these devices, in combination with a PC, to manage their personal finances. It is essential that the services offered via these devices are as closely integrated as possible.”

George Zaborowski, Senior Analyst - Financial Services

Some questions answered in this report include:

  • Could mobile banking become as indispensable as online banking?
  • Why can’t financial services afford not to be on social media?
  • How can providers improve their ‘virtual’ service offering?
  • What can be learned from the lack of success of direct-only banks?

The way consumers interact with financial services providers has been revolutionised by the rapid development of computer and internet technology over the past two decades. Even though the branch network remains relevant, online banking is now far and away the most frequent point of contact a bank or building society has with their customers. What’s more, internet-based information resources have become a primary point of reference for researching new products and services, while price comparison websites have altered how people go about buying new products.

With the enduring nature of technological progress, the financial services industry is now being impacted by a whole new phase of development. This new phase is centred on the rise of mobile devices, in particular smartphones, which are again transforming the way consumers interact with their financial services providers. While mobile banking is still in its early development, there are reasons to believe it may become an even more crucial component of a provider’s virtual services offering than traditional online banking via a PC.

This report is a detailed study of how ongoing technological developments are affecting consumer attitudes and behaviour in retail financial services. The primary focus is on the retail banking experience: how consumers manage their accounts and what channels, or devices, they use to complete various tasks, such as checking balances and transferring money. In addition to this, the report looks into how technological developments are impacting buying behaviour, as well as where people go for advice and information. It also explores what kind of influence the rise of social media is having on financial services.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Abbreviations
      • Executive Summary

          • Consumers and adoption of new technology
            • One in four internet users are Tech Enthusiasts
              • Figure 1: New technology adoption target groups, May 2013
            • Internet usage via mobile devices catching up with that of PCs
              • Figure 2: Devices used to access the internet during the last 3 months, May 2013
            • Key providers and sources of financial product information
              • The internet has changed retail banking but not who people bank with
                • Figure 3: Main current account provider, May 2013
              • Online forums are a key source of information
                • Figure 4: Key sources of information about financial products, May 2013
              • Banking channel usage and account management
                • Frequent interaction occurs online, but branches are still relevant
                  • Figure 5: Retail banking channel usage, May 2013
                • The PC is the central hub of account management
                  • Figure 6: Preferred channels for account management, May 2013
                • The PC is the top device for arranging new financial products
                  • Figure 7: Preferred channels for arranging financial products, May 2013
                • Most consumers prefer to receive financial advice face-to-face
                  • Figure 8: Preferred channels for financial advice, May 2013
                • Social media and financial services
                  • Few admit to using social media to interact with financial services firms
                    • Figure 9: Social media and interaction with financial services firms, May 2013
                  • Less than a tenth recognise they are influenced by what they read via social media
                    • What we think
                    • Issues in the Market

                        • Could mobile banking become as indispensable as online banking?
                          • Why can’t financial services afford not to be on social media?
                            • How can providers improve their ‘virtual’ service offering?
                              • What can be learned from the lack of success of direct-only banks?
                              • Trend Application

                                • Enhancing the in-branch experience with technology
                                  • Getting along with a more critical customer-base
                                    • Mobile banking is on its way into the mainstream
                                    • Consumer Segmentation – Adoption of New Technology

                                      • Key points
                                        • New technology adoption target groups
                                            • Figure 10: New technology adoption target groups, May 2013
                                          • Tech Enthusiasts (24% of the sample)
                                            • Demographic profile/highlights
                                              • Cautious Adopters (24% of the sample)
                                                • Demographic profile/highlights
                                                  • Passive Adopters (19% of the Sample)
                                                    • Demographic profile/highlights
                                                      • Laggards (32% of the Sample)
                                                        • Demographic profile/highlights
                                                        • Devices Used to Access the Internet

                                                          • Key points
                                                            • Mobile devices catching up quickly to PCs as the top device
                                                              • Figure 11: Devices used to access the internet during the last 3 months, May 2013
                                                            • Tech Enthusiasts provide a preview of things to come
                                                              • Figure 12: Devices used to access the internet during the last 3 months, by new technology adoption target groups, May 2013
                                                            • 70% of the population access the internet via two or more devices
                                                              • Figure 13: Repertoire of devices used to access the internet during the last 3 months, May 2013
                                                              • Figure 14: Repertoire of devices used to access the internet during the last 3 months, May 2013
                                                            • The virtual banking experience needs to be consistent across devices
                                                            • Main Current Account Providers and Consumer Technology Segmentation

                                                              • Key points
                                                                • Three in ten hold their main account with LBG
                                                                  • Figure 15: Main current account provider, May 2013
                                                                • The internet has changed retail banking but not who people bank with
                                                                    • Figure 16: Main current account provider, by new technology adoption target groups, May 2013
                                                                • Retail Banking Channel Usage

                                                                  • Key points
                                                                    • Frequent interaction occurs online, but branches are still relevant
                                                                      • Figure 17: Retail banking channel usage, May 2013
                                                                    • Mobile banking could become even bigger than online banking
                                                                      • Each login is a brand building opportunity
                                                                        • Tech Enthusiasts just as likely as Laggards to value in-branch services
                                                                          • Figure 18: Retail banking channel usage, by new technology adoption target groups, May 2013
                                                                        • Younger generations will drive the move toward mobile banking
                                                                          • Figure 19: Retail banking channel usage, by new technology adoption target groups, May 2013
                                                                      • Key Source of Information about Financial Products

                                                                        • Key points
                                                                          • Consumers get most of their information about financial products online
                                                                            • Figure 20: Most popular sources of information about financial products, May 2013
                                                                          • Word of mouth travels faster than ever online
                                                                            • Tech Enthusiasts most comfortable going online for information
                                                                              • Figure 21: Key sources of information about financial products, by new technology adoption target groups, May 2013
                                                                            • The affluent and 35 to 44s are the heaviest users of web-based sources
                                                                              • Figure 22: Most popular sources of information about financial products, May 2013
                                                                            • Main source of information can directly influence banking channel usage
                                                                              • Figure 23: Banking channel usage, by key sources of information about financial products, May 2013
                                                                          • Technology and Account Management

                                                                            • Key points
                                                                              • The PC is the central hub of account management
                                                                                • Figure 24: Channel preferences for account management activity, May 2013
                                                                              • Those who are engaged in tech are less reliant on face-to-face channels
                                                                                • Figure 25: Channel preferences for account management activity, by new technology adoption target groups, May 2013
                                                                              • 18 to 34s most comfortable using their smartphones to manage accounts
                                                                              • Technology and Arranging Financial Products

                                                                                • Key points
                                                                                  • The PC is the top device for arranging new financial products
                                                                                    • Figure 26: Channel preference for arranging financial products, May 2013
                                                                                  • Buying financial products via a mobile device is very niche…
                                                                                    • … but its long-term potential should not yet be discounted
                                                                                      • Will financial services follow the retail sector?
                                                                                        • Engagement with new tech leads to more PC-based buying activity
                                                                                          • Figure 27: Channel preference for arranging financial products, by new technology adoption target groups, May 2013
                                                                                      • Technology and Financial Advice

                                                                                        • Key points
                                                                                          • Most consumers prefer to get financial advice face-to-face
                                                                                            • Figure 28: Preferred channels for financial advice, May 2013
                                                                                          • Face-to-face advice preferred regardless of engagement with new tech
                                                                                            • Figure 29: Preferred channels for financial advice, by new technology adoption target groups, May 2013
                                                                                          • Doing things in person helps to put people at ease
                                                                                            • New technologies present new possibilities
                                                                                            • Social Media and Financial Services

                                                                                              • Key points
                                                                                                • Two thirds of the overall population use social media
                                                                                                  • Figure 30: Use of social media, by new technology adoption target groups, May 2013
                                                                                                • Few admit to using social media to interact with financial services firms…
                                                                                                  • Figure 31: Social media and interaction with financial services firms, May 2013
                                                                                                • …but if they do, they are more likely to use Twitter than Facebook
                                                                                                  • Figure 32: Social media and financial services, by use of social media, May 2013
                                                                                                • Less than a tenth acknowledge they are influenced by what they read…
                                                                                                  • Figure 33: Impact of social media on financial services, May 2013
                                                                                                • Financial services firms cannot afford to ignore social media
                                                                                                • Appendix – Consumer Segmentation – Adoption of New Technology

                                                                                                    • Figure 34: Agreement with the statement ‘It is important to spend a lot of time researching before buying technology products’, by demographics, May 2013
                                                                                                    • Figure 35: Agreement with the statement ‘It is better to wait until a technology product is established in the market before buying’, by demographics, May 2013
                                                                                                    • Figure 36: Agreement with the statement ‘It is enjoyable working out how to use a new technology product’, by demographics, May 2013
                                                                                                    • Figure 37: Agreement with the statement ‘I discuss the latest technology products with friends and family’, by demographics, May 2013
                                                                                                    • Figure 38: Agreement with the statement ‘I would only buy a new technology product to replace a broken one’, by demographics, May 2013
                                                                                                    • Figure 39: Agreement with the statement ‘I always try to make use of the full range of features on technology products’, by demographics, May 2013
                                                                                                    • Figure 40: Agreement with the statement ‘I tend to keep up with the latest technology news’, by demographics, May 2013
                                                                                                    • Figure 41: Agreement with the statement ‘I tend not buy a technology product until I have tried it out’, by demographics, May 2013
                                                                                                    • Figure 42: Agreement with the statement ‘I am generally not interested in buying new technology products’, by demographics, May 2013
                                                                                                    • Figure 43: Agreement with the statement ‘It is important for me to have the latest model of technology products’, by demographics, May 2013
                                                                                                    • Figure 44: Agreement with the statement ‘Buying new technology products is a waste of money’, by demographics, May 2013
                                                                                                    • Figure 45: New technology adoption target groups, by demographics, May 2013
                                                                                                    • Figure 46: Agreement with statements about new technology, by new technology adoption target groups, May 2013
                                                                                                • Appendix – Devices Used to Access the Internet

                                                                                                    • Figure 47: Most popular devices used to access the internet during the last 3 months, by demographics, May 2013
                                                                                                    • Figure 48: Next most popular devices used to access the internet during the last 3 months, by demographics, May 2013
                                                                                                    • Figure 49: Repertoire for devices used to access the internet during the last 3 months, by demographics, May 2013
                                                                                                • Appendix – Main Current Account Providers and Consumer Technology Segmentation

                                                                                                    • Figure 50: Most popular main current account provider, by demographics, May 2013
                                                                                                    • Figure 51: Next most popular main current account provider, by demographics, May 2013
                                                                                                • Appendix – Retail Banking Channel Usage

                                                                                                    • Figure 52: Banking channel usage – In-branch counter services, by demographics, May 2013
                                                                                                    • Figure 53: Banking channel usage – In-branch advice services, by demographics, May 2013
                                                                                                    • Figure 54: Banking channel usage – Online banking, by demographics, May 2013
                                                                                                    • Figure 55: Banking channel usage – Telephone banking, by demographics, May 2013
                                                                                                    • Figure 56: Banking channel usage – Mobile banking, by demographics, May 2013
                                                                                                    • Figure 57: Retail banking channel usage, by main current account provider, May 2013
                                                                                                • Appendix – Key Source of Information about Financial Products

                                                                                                    • Figure 58: Most popular key sources of information about financial products, by demographics, May 2013
                                                                                                    • Figure 59: Next most popular key sources of information about financial products, by demographics, May 2013
                                                                                                    • Figure 60: Banking channel usage, by key sources of information about financial products, May 2013
                                                                                                • Appendix – Technology and Account Management

                                                                                                    • Figure 61: Channel preferences for account management activity – Changing an address on an account, by demographics, May 2013
                                                                                                    • Figure 62: Channel preferences for account management activity – Checking an account balance, by demographics, May 2013
                                                                                                    • Figure 63: Channel preferences for account management activity – Transferring a small amount of money, by demographics, May 2013
                                                                                                    • Figure 64: Channel preferences for account management activity – Transferring a sizeable amount of money, by demographics, May 2013
                                                                                                • Appendix – Technology and Arranging Financial Products

                                                                                                    • Figure 65: Channel preference for arranging financial products – Buying a new insurance policy, by demographics, May 2013
                                                                                                    • Figure 66: Channel preference for arranging financial products – Opening a new bank account, by demographics, May 2013
                                                                                                    • Figure 67: Channel preference for arranging financial products – Buying or selling shares, by demographics, May 2013
                                                                                                • Appendix – Technology and Financial Advice

                                                                                                    • Figure 68: Preferred channels for financial advice, by demographics, May 2013
                                                                                                • Appendix – Social Media and Financial Services

                                                                                                    • Figure 69: Use of social media, by demographics, May 2013
                                                                                                    • Figure 70: Social media and financial services – Any type of interaction, by demographics, May 2013
                                                                                                    • Figure 71: Social media and financial services – Complain about a company, by demographics, May 2013
                                                                                                    • Figure 72: Social media and financial services – Praise a company, by demographics, May 2013
                                                                                                    • Figure 73: Social media and financial services – Contact a company directly for help or advice, by demographics, May 2013
                                                                                                    • Figure 74: Social media and financial services – Read what the company says about its products and services, by demographics, May 2013
                                                                                                    • Figure 75: Social media and financial services – Read what other people have said about the company’s products and services, by demographics, May 2013
                                                                                                    • Figure 76: Impact of social media on financial services – It has made me more likely to use that company, by demographics, May 2013
                                                                                                    • Figure 77: Impact of social media on financial services – It has made me less likely to use that company, by demographics, May 2013
                                                                                                    • Figure 78: Impact of social media on financial services, by new technology adoption target groups, May 2013
                                                                                                    • Figure 79: Social media and financial services, by new technology adoption target groups, May 2013

                                                                                                Companies Covered

                                                                                                • Barclays Bank plc
                                                                                                • Citibank
                                                                                                • Clydesdale Bank
                                                                                                • First Direct
                                                                                                • Grupo Santander UK
                                                                                                • HBOS plc (Halifax Bank of Scotland)
                                                                                                • HSBC Private Bank (UK) Limited
                                                                                                • Lloyds Banking Group
                                                                                                • Marks & Spencer
                                                                                                • Metro Bank
                                                                                                • Nationwide Building Society
                                                                                                • NatWest
                                                                                                • Royal Bank of Scotland Group plc
                                                                                                • Smile
                                                                                                • Yorkshire Bank PLC

                                                                                                Consumers and Technology in Financial Services - UK - October 2013

                                                                                                US $2,842.31 (Excl.Tax)