The news: Nearly half of British bank customers don’t trust their bank to help them manage their finances in a recession, per the GFT Banking Disruption Index.
By the numbers: Germany-based IT service management firm GFT released its inaugural Banking Disruption Index, a new quarterly survey that measures UK citizens’ satisfaction with their banks’ digital capabilities. This quarter’s index surveyed 2,000 UK respondents in August 2022. Here are the key stats:
But despite these less-than-stellar findings, overall consumer sentiment remains positive, with customers giving a satisfaction rating of 79 out of 100.
Tech with a human touch: According to the Banking Disruption Index, two-thirds of people would prefer to use digital channels to communicate with their bank, instead of visiting a branch. But there are caveats. Customers value human interaction when handling complex situations, and that could have a positive impact on trust.
But it’s not all about tech: For much of this year, UK citizens have been struggling with record inflation and rising costs of living. As the winter months approach, energy bills are expected to rise by nearly 80%. UK banks’ resistance to providing support for their customers is likely what’s driving this distrust.
Our take: The added stress of an economic downturn is making it clear just how fragile overall customer trust in banks is. Though customers indicated that they are generally satisfied with the rate at which banks’ digital transformations are progressing and the service they receive, obvious areas of improvement remain. Through the economic downturn, banks must demonstrate compassion and emphasize customers’ individuality to ensure they come out with stronger customer relationships when the economy begins to turn around.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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