“Having it all on your phone makes it convenient for everyday life.”

There is no doubt that our relationship with banks has completely transformed over the last decade. This is largely consistent with the growth of technology, as new tech disruptors emerge to transform traditional and outdated industries with new innovations, significantly affecting how industries such as banking interact with customers.

The customers’ ability to access their money from their bank provides an obvious correlation to this. Traditional banks, such as HSBC, Barclays, and Lloyds Bank, have gradually disappeared from our high streets over the last decade, but we can now check our balance, transfer money between accounts, and deposit cheques all on our phones. This demonstrates how technology has transformed customer experiences, with challenger banks like Monzo, Starling, and Revolut driving the change.

Nearly 15 years after the first challenger bank received a banking licence in the UK, we asked the public to find out what they think about challenger banks, and how they use them.

“I have a few of them myself and I think they’re easy to navigate if you are savvy on your phone. Avoids queueing up in banks and they are instantaneous.” Said one young professional from Manchester.

“Having it all on your phone makes it convenient for everyday life”, said another young individual.

The public feeling is positive towards challenger banks, with everyone having at least an awareness of them, or an account with one themselves. Monzo, Revolut and Moneybox were quoted, as their most notable strengths are that they stream all banking services into a single app, making them simple and quick to use anywhere.

Despite this positive sentiment towards challenger banks, respondents still use traditional banks as their primary bank account. Their salaries are sent to their traditional bank, such as Barclays and Santander, and then they transfer funds out to the challenger banks for money management, savings, and investing.

One reason for this is that traditional banks are deemed as more trustworthy. Despite one individual being a fan of challenger banks, he still has his salary go into the traditional ones, saying “I subconsciously think that traditional banks are a bit safer”.

Additionally, the public view challenger banks as more beneficial for everyday spending. They offer more advanced services which summarise where money is being spent, and their personalised features categorise spending to help manage their outgoings.

“I like Monzo because it tells you exactly where you’re spending your money. While regular banks just tell you the amount, Monzo will tell you how much you’re spending on food, on entertainment etc.”

Traditional banks are making strides to catch up with the features and modern reputation which the challenger banks have. Ultimately, the customer experience has been what’s driven the switch to more technological savvy apps. As the traditional banks innovate these features themselves, the competition will heat up to see who can deliver the best well-rounded experience. Checking in with your customer needs are essential for both types of banks to stay ahead of the game. Market research is the pinnacle of this, allowing you to truly listen to your customers and, as a result, develop features that resonate with them.

Written By
Stephanie Earnshaw
Business Development Manager

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