- Only 15% of the population prefer dropping in at a bank branch to manage their finances.
- The use of online banking has seen a steady decline, whereas almost 2 in every 3 Brit uses mobile banking.
- Brits are five times more likely to use the mobile apps of incumbent banks than app-only banks.
- Gen Z uses mobile banking at least once a week.
Mobile banking is rapidly developing into the most prevalent way of managing finances across Great Britain. Moneyzine.co.uk reveals that mobile banking is twice as popular as online banking, and that visiting bank branches is now almost as common as using spreadsheets for budgeting.
Done with in-person personal financing
The number of people who visit traditional banks or building society branches is down across the board. The digitalisation that gained traction during pandemic proved to be permanent: every demographic covered in the survey slowly forgoes in-person visits, with figures never recouping to pre-2020 levels.
However baby boomers still value the human touch, with over one-quarter of respondents reporting that they still visit their bank branches. Wales also emerges to be the home to the highest proportion of people who prefers in-person banking at 23%, while Scotland has the lowest with only 1 in 10 preferring to do so.
While older generations prefer seeking help from professionals, a surprising proportion of the Gen Z and Gen X respondents, 15% for both, would rather rely on their own methods such as using spreadsheets or withdrawing cash for budgeting.
The data also suggests that 10% of Genz Z respondents don't formally budget their finances - a surprising statistic given the cost of living crisis.
Mobile banking paves the way
Figures show that the use of online banking, accessed through web browsers, has been dwindling steadily as the public embrace mobile banking. The nation now uses the mobile applications offered by their banks or building societies to manage their finances more than any other way of doing so, with 67% reporting it being their preferred method.
There is no linear correlation between desktop and mobile banking preferences and generational differences, though: users aged between 25 and 49 have the highest proportion of mobile banking users at 80%, surprisingly surpassing the population aged between 18 and 24 by 8 points.
The rise of mobile banking also paved the way for the public to be more engaged with their finances. Both generations reported checking their banking accounts at least once a week, at 41% and 46%, respectively. Almost one-third (28%) of all adult Brits glance at their financial snapshot daily.
And on the fence with challenger banks
Challenger banks, neo-banks, or app-only banks – they come with many names and are slowly pooling their fair share of customer bases across the UK, with 14% of the population reported having an account. However, using mobile applications of legacy banks is still five times more popular than app-only banks.
Want to know more about challenger banks? Here's a list of top 10 online banks in the UK.
With lower overhead costs and attractive mobile products, banks like Revolut and Monza are particularly popular among Gen Z: the population aged between 18 and 24 has the highest proportion of app-only bank users, with 1 in 5 using such.
London has the highest proportion of neo-bank users at 22% compared to other regions which is unsurprising considering the city is also home to the majority of foreign-born residents in the UK. In comparison to legacy banks, challenger banks feature a rather more straightforward application process, which ultimately makes it easier to bank expats and travellers.
These figures are representative of the changing face of personal financing. Mobile banking has been in the making for a long while – now as it's becoming the norm, institutions should consider diversifying their offerings and expand their banking services to include investment products, trading instruments, budgeting tools, and more.Jonathan Merry, CEO of Moneyzine.co.uk
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