Digital disruption is supposed to be taking the UK banking sector by storm, but it is in fact moving a lot slower than anticipated. New ACI Worldwide research, involving 2,074 people and carried out by YouGov, shows that 88 per cent of UK consumers have no intention of switching bank accounts within the next 12 months. Eighty two per cent never use mobile payment services such as PayM or Pingit during an average month, and 59 per cent avoid m-banking within this same timeframe. Seventy eight per cent stated that it is unlikely they would use banking services offered by the likes of Google, Apple or Facebook.

Dean Wallace, global business lead, mobile payments, ACI Worldwide comments: “The results appear to fly in the face of the popular ‘banking disruption theory’ and suggest that the majority of consumers are in fact loyal to their banks, that they don’t really like change and are staying put. This could be because e-services offered by most UK retail banks today are simply not compelling or different enough for the majority of customers to change bank account providers.”

Change is happening, however. According to the survey, 50 per cent of respondents are now regularly using third party payment providers such as PayPal; 76 per cent of current account holders online are using internet banking at least once a month and 29 per cent of UK consumers are now paying regularly via contactless cards, with Londoners leading the charge; 56 per cent of respondents said they are using contactless every month. Wallace comments: “The reality among many consumers is that they don’t really know what they want until it’s available or already in use by friends or family. The fact that nearly 90 per cent of current account holders will stay put with their current bank should only be a mild solace for banking providers, as who knows what will happen in the next year or two. It is now that banks need to differentiate themselves from their competition and find ways to better attract and retain their customers. In terms of providing easily accessible and flexible services, banks need to focus on those opportunities that exist and grasp them quickly. The history of adoption shows that there is likely to be a ‘tipping point,’ especially for younger customers who will follow where their peers lead.”

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