Retail banking has changed in recent decades. The rise of the internet and prevalence of smartphones have provided customers with alternative ways to access bank services previously only available in-branch.
While face to face is still the preferred way of accessing bank services for many people, the take up of alternative methods among the affluent and young – groups contributing the most to consumer banking’s current and future income – suggests that online and mobile technologies have the potential to unlock cheaper services for consumers, either at their existing banks or by allowing new banks to enter the market and increase competition.
Branching Out draws on a new SMF/ComRes survey of attitudes towards retails banking. The report explores the disruptive innovation that online and mobile channels have already created in other retail sectors; the potential new developments in banking, including increased competition; and the challenges involved in securing these.
The report contains responses to its analysis from Adrian Harvey (Citizens Advice), Adam Marshall (British Chambers of Commerce), Mark Mullen (first direct), Ged Nichols (Accord) and Steve Cooper (Barclays UK).