Low trust amongst banking customers as recession looms

London, 24 October 2022 – New research reveals today that 48% of people in the UK do not trust their bank to help them manage their finances during a recession, with two thirds of banking customers also stating they would prefer to use digital channels to communicate with their bank rather than visiting a branch.
 

With trust low between customers and their banks, a commitment to meaningful online banking through a transformation of digital services could go a long way to improving consumer trust, as the UK continues to face an uncertain economic landscape.
 

The data comes from digital transformation specialist GFT‘s newly launched Banking Disruption Index for the UK, a quarterly Index that assesses consumer attitudes towards banks and their technology capabilities.
 

As part of the Index, GFT also measures consumer sentiment toward their banks’ digital offering, with 0 being the lowest possible score and 100 being the highest possible score. The Q3 sentiment scoring shows a 79-point satisfaction rate amongst customers towards the technology capabilities of their chosen bank.
 

In fact, most people (67%) would now prefer to use an app for their everyday banking needs, such as transferring money and making payments. Only 17% of consumers would prefer to liaise directly with the bank and have them do it on their behalf.
 

Despite this move towards a digital banking experience, most Gen Zs think their bank could be doing more to stay ahead of the technology curve. Only 52% of 16-24-year-olds surveyed believe their bank is keeping up with technology quickly enough.
 

Another major concern cited in the research was the impact the likely future recession would have on people’s savings, with almost half (42%) worried a market downturn would negatively impact both their bank and their personal savings.
 

Richard Kalas, Client Solutions Director, Retail Banking at GFT UK, said: “It’s clear that consumers expect greater levels of digital self-serve capability from their banking provider. Younger age groups in particular prefer channels such as WhatsApp and social media to communicate. The research shows that the banks and building societies with little or no digital service capability will find it exceptionally hard to compete and almost impossible to attract a younger audience.”