Research conducted by new entrant to the UK fintech market, Modularbank, in partnership with market research specialists, OnePoll, has found that over 90% of UK consumers claim that a strong technology offering is important to them when choosing who to bank with. In fact, based on a survey of 2,000 UK consumers, this factor was cited more than any other as being an important factor in making this decision – more so even than interest rates, which 88% of consumers cited as being important in their decision.
Technology also beat out ‘brand of the bank’ and ‘personal in-branch relationships with banking staff’ when it comes to what is important to consumers in choosing where to bank, with only 68% and 47% of people respectively claiming that these attributes were important to them.
On a scale of 1-10 (with 1 being unimportant, and 10 being extremely important), 80% of consumers voted six or above when asked how important technology and a digital offering are in banking today. A further 53% claimed that they would be happy if they never had to visit their banking branch in-person again to complete a transaction.
Vilve Vene, co-founder and CEO of Modularbank comments: “Technology really is the key to attracting and retaining a customer’s business in the banking world. Interestingly, despite current perceptions that disruptive challenger banks have decreased loyalty to incumbent, traditional financial institutions, nearly 70% of UK consumers claimed to be loyal to their banking institution.
“With consumers prizing technology in banking above all else, however, what’s clear is that the key methods by which disrupter brands are able to test this loyalty is by providing a technology offering which makes for a more ‘seamless banking’ experience for the consumer. At Modularbank, we are committed to empowering every financial institution to be able to provide these services.”
Indeed, Estonian fintech company, Modularbank, which now offers its services in the UK, is in the business of providing platforms which allow any banking institution to integrate technology into its business. This allows financial institutions to improve ease and flexibility in the way that they serve their customers, providing them with a seamless banking experience which is more tailored to their individual needs.
A customer perceives banking as seamless when they are able to complete financial services without challenges or hurdles. 54% of UK consumers believe seamless banking is when they can complete transactions online without having to go to a branch, whilst 56% state that fast and efficient transactions constitute a seamless experience.
Legacy technology systems used by financial institutions often lack agility and are not particularly nimble. As such, they do not allow for a strong digital or online offering, or the ability to provide more tailored services, such as variable interest rates based on personal circumstances. Modularbank’s technology platforms which can be seamlessly integrated into existing business infrastructures allow for such services to be offered easily.
Modularbank was founded in Estonia in 2018 and has operated in this market, the most advanced digital society in the world, ever since. It is part of the Fintech Power 50 2020, an annual guide to the most influential, innovative and powerful figures and businesses in the fintech industry. For more than 25 years, its co-founder and CEO Vilve Vene has been working to bring technology to the finance sector, devising innovative financial technology offerings even before ‘fintech’ became an established concept.