Research commissioned by CRIF has found a shift in banking preferences among UK consumers, highlighting a declining interest in bank branch proximity.
According to FinTech Finance, in the study, only 23% of UK adults consider having a nearby bank branch important when choosing a financial provider, a stark contrast to the 38% of Americans and 35% of Europeans who still value this aspect.
The study, part of CRIF’s 2024 Banking on Banks report series, explores generational attitudes, showing that young UK adults aged 18-34 are particularly indifferent to physical banking locations, with just 13% prioritizing proximity. This is a sharp decline from 2023, where 21% of this age group valued nearby banking options. Meanwhile, the older generation in the UK (55+) shows a slightly higher preference for nearby branches at 33%, but this figure remains significantly lower than their counterparts in the US (53%) and Europe (41%).
The research also delves into other banking priorities, with 41% of Brits emphasizing the importance of banks offering products and services that meet their needs, and 35% valuing a well-established brand. Furthermore, good customer reviews and comprehensive online banking capabilities are crucial factors for UK consumers, consistent across all age groups.
Sara Costantini, Regional Director for the UK & Ireland at CRIF, commented on the findings, stating, “The way in which we manage our finances is changing, and nowhere is this clearer than in the UK. While in the US and Europe many people still value the importance of a local bank branch, Brits of all ages are placing less importance on this when choosing a bank.”
Costantini further highlighted the challenges faced by banks and financial providers in adapting to these changing preferences, emphasizing the need to balance digital innovation with maintaining traditional services to meet diverse client needs.
This study builds on previous findings from 2023, reflecting an increasing embrace of digital banking solutions across Europe during challenging economic times, underscoring the UK’s leadership in financial services and communication technology.
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