According to The Financial Brand, experts in the financial sector estimate the pandemic expedited the trajectory of digital banking solutions anywhere from three to ten years. The forecast is that the vast majority who have pivoted to digital channels will not switch back.Īs consumers move en masse into digital solutions, the savings space is increasingly crowded with competitors. The statistics certainly tell a powerful story about digital uptake. 36% of British savers are using a savings app or online tool. When it comes to the UK’s small-to-medium enterprises (SMEs), 83% use mobile banking according to the Bank of England, and almost 100% use online banking. consumers consider an easy-to-use mobile banking app as the most important benefit their financial institution provides. One US survey shows that 53% of consumers who are banking digitally today had switched to digital banking as a result of the pandemic, embracing the speed, security, safety and convenience of digital. Banking transformation is charging ahead. In parallel, COVID-19 has accelerated customers’ adoption of mobile banking apps and digital banking across the globe.

As the Mintel ‘UK Deposit And Savings Accounts Market Report 2021’ makes clear, a key strategy here is to improve digital experiences, making online investment spaces more accessible and functional. In this environment, banks and building societies have no choice but to innovate, designing different product features and benefits in their digital banking offerings, rather than focusing on the headline rate. With low-interest rates persisting and customers still insecure about their finances, many are on the lookout for alternative places to store their money as inflation rises. This jump has been attributed in part to curtailed spending opportunities following shutdowns in leisure, hospitality and retail and to economic uncertainty prompting citizens to build a savings buffer.Īccording to research by Aviva, more than a third (36%) of consumers plan to maintain their new saving habits. In 2020, the household savings ratio – the percentage of disposable income households put away, soared to 16.3%. In June 2021 alone, households deposited an additional £9.8 billion with banks and building societies. As Britons continue to save more in the wake of COVID-19, and more savers do their banking digitally, Sandstone Technology explains how building societies and banks must re-think how they service their e-savings accounts to increase share of wallet.ĬOVID-19 lockdowns triggered a huge increase in savings in the UK.

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