2020 UK Retail Banking Survey - Amazon S3
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2020 UK Retail Banking Survey
Executive summary
Today’s political and economic uncertainty has already left a dent in
the revenues and profit margins of the retail banking sector. For some,
not-so-fond memories of the 2008 financial crisis that saw the likes of
banking giant Northern Rock fall to its knees will come rushing back to
them; for others, the opportunity for innovation has never been brighter.
The UK’s retail banking sector has over 300 Neobanks like Monzo and Revolut have
banks and 45 building societies, equating to dominated news headlines in recent months,
a grand total of 9,000+ branches, yet the Big which perhaps explains why older generations
Four banks (HSBC, Barclays, NatWest/Royal are significantly more aware of them than
Bank of Scotland and Lloyds Banking Group) younger generations, but this could soon change.
still manage over 75% of customer bank
accounts in the UK, 85% of business accounts In previous years, these neobank newcomers
and more than £5 trillion in total assets. have thrived off of guerrilla marketing and
word of mouth campaigns - take Monzo’s
To find out how the opinions of consumers elusive coral cards that created an air of
fare in today’s rapidly changing banking mystique younger consumers found
environment, we carried out a survey of over irresistible. However, as neobanks continue
2,000 consumers in the UK, from a range to up the ante on the marketing front
of different generations and regions, and by targeting mainstream audiences,
pinpointed a number of crucial insights awareness levels could rapidly change.
into the sector.
And, as our survey discovered, many
For instance, we discovered: consumers are open to switching over
to these neobanks on a permanent basis
• What Big Four bank is the most if they can offer them more than the likes
well-known - and who holds
the keys to effective brand and of the Big Four.
marketing, in-branch experience,
online banking and customer service While increased competition might create
• What bank has the best customer chaos for those who hold the reins, it’s also
service (hint: it’s not one of the Big Four)
the main driver of innovation. In the years
• The bank with the best overall
that lie ahead, banks that listen to the needs
customer experience and service
of their customers, and seek to innovate at
• Who the most relevant bank is to
modern consumers every touchpoint, will stand to gain the most.
• Neobanks may be niche, but they’re
gaining momentum, and fast... CEO and Co-Founder at Qudini
Imogen Wethered
When looking at today’s retail banking sector,
it would be remiss not to acknowledge the
increase in competition that’s hit the market
over the last decade; Metrobank, the Spanish-
owned Santander, and a flurry of neobanks.
Yet, while this fresh competition was supposed
to break the dominance of the Big Four, the
Bank of England has introduced a number of
regulations that are supposedly holding them
back from reaching growth.
qudini.com 2
About our survey:
In August, 2019, we surveyed 2,001 consumers that were 16 years old
or older from across 11 different regions throughout the United Kingdom
about their relationships with retail banks. This included East of England,
Greater London, East Midlands, West Midlands, North East, North West,
Northern Ireland, Scotland, South East, South West, Wales and Yorkshire
and the Humber. We classified Generation Z as being between 16 and 23
years old, Millennials as being between 24 and 37 years old, Generation X
as being between 38 and 53 years old, Baby Boomers as being between 54
and 72 years old, and the Silent Generation as being 73 years old and older.
Key findings:
1. The most well-known bank is Barclays,
with 79% saying they’ve heard of them
2. 47% of Baby Boomers and 49% of the Silent
Generation have heard of Monzo, compared to
only 29% of Gen Zers and 36% of Millennials
3. Barclays was voted the strongest and most
relevant bank
4. 64% said Halifax has a ‘Good Customer
Experience’
5. 8% of all survey respondents have
a neobank account
6. 14% of all respondents are considering using
Monzo or Revolut as their primary bank
7. One in five of all Millennials are considering
using Monzo/Revolut as their primary bank
8. Just over a quarter of Monzo and Revolut
current customers use them as their primary
bank provider
9. 42% of Monzo and Revolut customers
are strongly considering making them their
primary bank
10. 10% of Gen Zers and 8% of Millennials don’t
bank with anyone
qudini.com 3Qudini UK Retail Banking Survey
The Big Four are known
for dominating the lion's
share...
It seems the Big Four banks are equally known for dominating the lion’s
share of the retail banking market, making it near impossible for any
newcomers or smaller competitors to muscle their way in.
Barclays had the highest number of customers in
Brand and marketing
our survey, with just under one fifth (19.1%) saying
they have an account with the bank. Halifax, a banking The bank said to have the strongest
division of Bank of Scotland, which in turn is owned brand and marketing presence was
by Lloyds Banking Group, occupied 15.9%, followed Barclays, followed closely by Halifax
and Lloyds. From a generational
closely by Lloyds at 14.8%. Santander took a 14.8%
standpoint, this sentiment was true
stake, which was followed by NatWest (and RBS) for Millennials and Baby Boomers,
at 13% and HSBC at 10.7% while Gen Zers and Gen Xers said
Lloyds had the strongest brand and
On a generational level, Barclays had the highest marketing. The Silent Generation
percentage of customers across all generations besides cast their vote in NatWest and
Gen Xers, who were equally as likely to be customers of HSBC’s direction.
Halifax.
In-branch experience
Barclays also had the highest level of brand awareness, Barclays had the highest scores
with 79% of respondents saying they’d heard of the bank for in-branch experience overall,
before. Lloyds, NatWest and HSBC followed closely in followed by Lloyds and Halifax.
Barclays’ in-branch experience
suit, lagging only one to two percentage points behind.
was the most favored by Gen Zers,
Millennials and Baby Boomers,
Our study also revealed that older generations are
while Gen Xers said Lloyds and
significantly more aware of banks than their younger
the Silent Generation said HSBC.
counterparts. Barclays was the most well-known with
Gen Zers and Millennials, at 60% and 66% respectively. Online banking
Generation X were just as likely to have heard of Barclays
Barclays had the best online
as they were Lloyds, at 82%. Barclays was also well- banking experience overall, followed
known with Baby Boomers, at 92%, and the Silent by Halifax and Lloyds. This opinion
Generation had the highest awareness levels overall, with was shared by all generations except
97% equally as aware of Lloyds, Halifax and Santander. the Silent Generation, who preferred
NatWest instead.
But it wasn’t just reach and awareness that saw Barclays
dominate - the bank also received the highest percentage Customer service
points for its brand and marketing, in-branch experience, Barclays had the highest general
online banking and customer experience. customer service overall, followed by
Halifax and Lloyds. This opinion was
shared by Gen Zers, Millennials and
Baby Boomers, while Gen Xers and
the Silent Generation preferred Lloyds.
qudini.com 4Which of the following banks/financial services companies
have you heard of? (Tick all that apply)
0% 25% 50% 75%
(Overall %)
Barclays (79%)
Lloyds (77%)
Halifax (77%)
NatWest (77%)
HSBC (77%)
Santander (75%)
TSB (72%)
Cooperative (64%)
Virgin Money (59%)
MetroBank (50%)
Monzo (40%)
Standard (31%)
Chartered
Coutts (29%)
Starling (28%)
Atom Bank (26%)
Silent generation (73+)
Baby boomers (54-72)
Revolut (18%)
Generation X (38-53)
Millennials (24-37)
None of the above (4%)
Generation Z (16-23)
qudini.com 5Barclays is the strongest
and most relevant
In today’s fast-paced and rapidly changing business environment,
embracing digital innovation and changing consumer demands is
imperative to remaining relevant with modern consumers.
When asked which bank they think is the strongest and
most relevant, Barclays was the most common answer,
with 39% of all survey respondents stating that this was
the case. This was followed by Lloyds and Halifax, which
were both at 32%.
This opinion was shared across all Generations except the
Silent Generation, who cast their vote Santander’s way.
When asked which bank was neither strong nor relevant,
Cooperative was the most mentioned. This sentiment
was shared by all generations, and increased significantly
with age.
Halifax come first on the
customer experience front
While there might be more communication channels than ever before,
consumers still want a thorough yet speedy customer experience
- whatever channel they choose to engage through.
When asked which banking brand had a ‘good
customer experience’, Halifax received the highest
percentage points overall, at 64%.
The Silent Generation were particularly big supporters
of the bank, with 82% sharing this opinion - a stark
contrast to Gen Z’s 49%.
Millennials and Gen Zers were more likely to believe
Barclays’ customer experience was the best, at 52%
and 57% respectively. NatWest had made a particularly
positive impression on Gen Xers, with 66% casting their
vote in NatWest’s direction, while Baby Boomers were
more likely to say Lloyds, at 72%.
qudini.com 6Barclays scores big for
its in-branch experience
Banks have made a big effort in recent years to modernize their in-store
experience, incorporating everything from electronic kiosks and appointment
scheduling software through to in-branch cafes and free wifi.
Out of all the banks mentioned in our survey, Barclays
seems to have nailed down the experience the best.
Of all respondents who had visited a bank branch in the
last two years, Barclays received the highest percentage
score for its branch experience and service, with 29%
saying it was excellent or very good.
This opinion was shared across all generations, with
40% of Gen Zers, 38% of Millennials, 28% of Gen Xers,
22% of Baby Boomers and 32% of the Silent Generation
saying Barclays’ in-branch experience was excellent or
very good.
Santander, on the other hand, was voted as having
the poorest experience, with 6% saying its in-branch
experience was “extremely poor”.
Strongest in branch experience
Overall 16% 13% 13%
Gen Zers 16% 15% 13%
Millennials 20% 13% 12%
Gen Xers 18% 16% 16%
Baby Boomers 14% 14% 13%
Silent Gen 17% 14% 11%
qudini.com 7Who do you bank with?
0% 5% 10% 15% 20% 25%
(Overall %)
Barclays (19%)
Halifax (16%)
Other (16%)
Lloyds (15%)
Santander (15%)
NatWest (13%)
HSBC (11%)
TSB (6%)
I do not bank (4%)
with anyone
Monzo (4%)
Cooperative (3%)
MetroBank (2%)
Virgin Money (2%)
Starling (2%)
Revolut (2%)
Silent generation (73+)
Baby boomers (54-72)
Generation X (38-53)
Millennials (24-37)
Generation Z (16-23)
qudini.com 8Neobanks are still niche,
but they’re gaining
momentum
Fresh newcomers like Monzo and Revolut have caused quite a stir in
the banking community as of late. By replacing physical branches with
a strong online or mobile app presence, neobanks have been eagerly
adopted throughout the UK.
Out of all our survey respondents, 4.2% Surprisingly, older generations were more
had an account with Monzo, 1.8% had an likely to have heard of challenger banks than
account with Starling, 1.5% had an account their younger counterparts. For instance,
with Revolut and 0.5% had an account with 47% of Baby Boomers and 49% of the Silent
Atom Bank - accumulating to a grand total of Generation have heard of Monzo, compared to
8.1% of all survey respondents. Monzo had only 29% of Gen Zers and 36% of Millennials.
a particularly high adoption rate amongst This trend carried across Starling, Atom Bank
younger audiences, with 8% of Gen Zers and and Revolut.
6% of Millennials saying they have an account.
Although not quite on the same scale as the
Big Four, awareness levels for neobanks were
relatively high. Out of all the challenger banks,
Monzo had the highest brand awareness, at
40% overall, followed by Starling at 28%,
Atom Bank at 26% and Revolut at 18%.
Neobank brand awareness levels
40%
28%
26%
18%
qudini.com 9Almost half of Monzo and
Revolut customers consider
switching permanently
The increased popularity of neobanks like Monzo and Revolut arguably
comes down to their flexibility. They are easy to obtain, even easier to use
and offer a number of innovative digital features that allow users to keep
track of their day-to-day spending.
And while these neobanks now have huge customer
bases, the majority still use their neobank accounts
as add-ons to their existing bank accounts with more
traditional providers. Of the 6% of respondents who are
customers of Monzo and/or Revolut, only 26% said they
use it as their primary bank.
Younger generations are considerably more likely to
use these banks as their primary providers, with 31%
of Gen Zers and 36% of Millennials saying this was
the case. This percentage drops significantly for older
generations, with only 14% of Gen Xers and 9% of Baby
Boomers saying they currently do.
Just under a third (32%) were adamant that they would
always use a traditional bank as their primary provider,
however, this could soon change as neobanks continue
to earn the trust of their existing customers. A significant
42% of Monzo/Revolut customers said they are strongly
considering using these banks as their primary providers.
This was particularly true for respondents from Greater
London, Norwich, Newcastle, Leeds and Edinburgh.
Gen Xers and Baby Boomers are more likely to say they
will always use a traditional bank in addition, at 46%
and 45% respectively. This was also the case for female
consumers with a Monzo or Revolut account, with 40%
saying they would always use a traditional bank in
addition, compared to only 23% of males.
qudini.com 10Is awareness the only
thing that’s holding
back the neobanks?
A lack of awareness was the number one reason why our respondents
wouldn’t use a neobank as their sole banking provider. When we asked all of
our respondents - those with and without a neobank account - if they would
ever consider switching their account to Monzo or Revolut, 32% said they’ve
never heard of them.
The second most common response However, out of all the respondents, 14% said
holding respondents back from switching they’re considering using Monzo or Revolut
to a neobank permanently was their lack as their sole provider - and this figure jumped
of branches, with 22% saying that it was up to 20% when looking at Millennials alone.
off-putting. This was particularly true with Only 8% of Baby Boomers and 1% of the Silent
respondents from the Silent Generation, Generation said the same.
with 30% saying this was of concern, while
Gen Xers were the least likely to see this
as an issue, with only 18% agreeing with
the statement.
Others expressed concerns about the stability
of Monzo or Revolut, with 17% saying they
don’t think they’re stable enough to be sole
banking providers.
Why don’t you use one of the neobanks like Monzo or Revolut as your primary
bank provider?
Never heard of them 32%
I wouldn’t want to use a bank without branches 22%
I don’t think they are stable enough 17%
I am considering it 14%
I don’t think they can support enough of my banking needs 11%
I don’t think they offer the customer service I would want 10%
I don’t know 10%
qudini.com 11Conclusion: Banks need
to blend efficiency with
a human touch
While the Big Four banks still dominate the UK market, our survey revealed
that Barclays is the most well-known and has the best brand and marketing,
in-branch experience, online banking and customer experience. However,
out of all respondents who had visited a bank branch in the last two years,
Halifax was voted as having the best customer service.
From a customer experience standpoint, the bank
considered to have the best overall customer experience and
service was Barclays - it was also voted the most relevant.
Despite their comparatively low adoption levels,
neobanks are quickly gaining momentum in the retail
banking sector. Compared to older generations, younger
consumers are considerably less aware of neobanks,
but as these awareness levels rise over the next few
years, and as neobanks continue to infiltrate and
appeal to younger consumers, adoption rates will
most likely increase.
We will also most likely see the number of consumers
using neobanks as their primary provider increase Time
-e
as a relatively high number of Monzo and Revolut f fic
customers (and non-customers) are already ien
considering making the switch.
t
Overall, these survey
results indicate that modern
consumers are big on customer
service and experience, both Hum
in its traditional and digital an
forms. The banks that can
to
uc
provide a time-efficient service
h
with a human touch across
all channels will stand to
gain the upperhand.
qudini.com 12Qudini
Retail Choreography
Win the banking revolution
We help retail banks increase profitability and ensure lasting
brand relevance through superior customer experiences, advanced
branch operations and game-changing business intelligence.
Qudini’s pioneering solutions include:
Appointment Scheduling
Wait Line Management
Event Bookings
Staff Task Management
Branch Floor Management
Business Intelligence
How Qudini benefits retail
banks:
More footfall: Doubling appointment booking traffic
for video bankers and community personal bankers
Greater productivity: 50% reduction of admin time
in managing appointments
Increased retention: 20% reduction of walkouts in-
branch Better resource allocation: due to insights
on what
customers need and when
Digital education: 16% increase in in-branch apps
downloaded. Let’s talk
Qudini works with the world’s leading retail banks
info@qudini.com
and retailers, including NatWest, Royal Bank of
Scotland, Standard Chartered, Samsung, O2, IQOS, Read use cases, case studies and ROI at:
Tui, L’Occitane and Brown Thomas qudini.com/industries/retail-bankingYou can also read
