Futurice Reveals How Banks Are Failing to Meet Customers Digital App Demands

High street banks are failing to meet customers’ mobile banking expectations reveals Futurice UK, the digital and AI transformation consultancy, in its latest survey.

The survey, titled UK Mobile Banking Insights and heard from 518 UK adults, shows that the most popular bank in terms of satisfaction is Monzo. With 30 per cent of respondents expressing satisfaction with the app, this was double the level of satisfaction of the bank in second place: NatWest (15 per cent). In third, was Chase (14 per cent).

The Futurice survey provides compelling evidence that user expectations in digital banking are evolving, and financial institutions must adapt quickly to stay competitive.

Customer frustrations

Customers also expressed their frustrations with apps, with Barclays being named the most irritating by seven per cent of respondents, Nationwide by six per cent, and HSBC by five per cent. When asked the reasons for these frustrations, 47 per cent of respondents said that inadequate customer support was the major issue. Slow loading times (45 per cent), poor user interface (44 per cent) and limited app features (37 per cent) were other listed reasons.

Furthermore, participants repeatedly mentioned apps crashing, having complicated layouts, taking a long time to load and being regularly unavailable (due to maintenance or updates) as key frustrations. Some described their interaction with the Barclays app as ‘slower’ and ‘not user friendly’, citing login issues and error messages. Meanwhile, users criticised HSBC’s app for requiring ‘constant’ approvals for transactions which ‘takes too long’.

Matthew Edwards, MD of Futurice UK

“Banking apps are critical touch points between banks and their customers,” said Matthew Edwards, MD of Futurice UK. “People want to be on top of their finances and they need their banking apps to keep up. From easy in-app navigation to 24/7  customer service, these findings suggest that by failing to deliver consistently effortless digital experiences, banks are not meeting their customers’ expectations.”

Edwards added that today’s users are looking for the seamless interaction they’re accustomed to from their other essential apps: “Banks and financial institutions should prioritise operational excellence in their digital platforms. This means ensuring the customer journey is smooth from login to transaction, and that apps are equipped to handle peak demand without compromising speed or user experience.

“Investments in backend infrastructure, load management and interface design are no longer optional, they are prerequisites for retention.”

Retaining customers

Over a third (34 per cent) of respondents said they had five or more banking apps on their phones. These apps handle everything from current, savings and mortgage accounts, to crypto and foreign exchange. They were not showing huge amounts of loyalty, however. An intuitive and effective app was a big desire for the respondents as 70 per cent said they would ‘likely’ or ‘very likely’ switch providers if there was a more reliable app.

Another reason cited for changing the app was reliable support. Futurice found that 71 per cent were ‘likely’ or ‘very likely’ to consider switching banks for superior customer service while 67 per cent would think about changing for 24/7 support.

Edwards commented: “Round-the-clock support isn’t a luxury – it should be the new normal for banks wanting to retain their customers.

“AI-driven chatbots are useful for filtering common queries, but effective  customer service needs a hybrid approach, with human agents also on hand for more complex issues.”

Personalisation

Other insights revealed by the Futurice survey include respondents being annoyed and underserved by limited in-app features and a one-size-fits-all approach. Many want tailored advice, budget tools and money pots for an individualised banking experience: 66 per cent would consider switching to a provider with more innovative app features, while half would switch for personalised financial advice.

Monzo, which came out top in terms of overall satisfaction, was praised by users for the ease of directing money into different pots, whether saving for something specific or tracking spending. Participants said Monzo’s pots ‘helps me budget’ and ‘feel in control’ adding that the app ‘offers more than just banking’.

“Banks can deploy advanced analytics and AI to provide bespoke financial advice, spending insights and savings tools that align with customers’ unique circumstances,” said Edwards. “Embracing personalisation means putting the customer at the centre of the product, enhancing customer satisfaction, deepening engagement and driving loyalty.”

Ethical banking

Additionally, according to the survey, ethical banking is becoming a mainstream expectation. Matthew Edwards says: “It’s no longer a ‘niche’ concern; 48 per cent of respondents would ‘likely’ or ‘very likely’ switch to a provider that follows ethical banking practices.

“Customers are actively seeking banks that reflect their values around sustainability, fair business practices and social responsibility. Banks that communicate their commitment to sustainability and fair practices stand to build stronger emotional connections with their customers.”

Meanwhile, security remains a crucial concern for many, with 68 per cent saying they were ‘likely’ or ‘very likely’ to switch for enhanced security features.

“It’s clear that people expect more from their apps.”

The post Futurice Reveals How Banks Are Failing to Meet Customers Digital App Demands appeared first on The Fintech Times.

Read More