In recent years, the UK banking landscape has undergone a significant transformation driven by evolving consumer preferences and the growing demand for convenience. In the last twelve months alone, searches for banking apps have surged by 29%, with more and more Brits favouring the simplicity and convenience they offer.

With this in mind, we surveyed 1,500 adults in the UK to uncover their attitudes towards this shift. Are brick-and-mortar banks really becoming a relic? Let’s dive into our survey results to find out.

Would people in the UK consider switching to a fully digital bank?

As digital banking services continue to gain traction, we found that 18% of people have already gone fully digital, leaving traditional banking behind. Additionally, 23% believe that digital banks offer a variety of advantages, including added convenience, lower fees, and innovative features.

While digital banks are growing in popularity, there’s still some hesitancy surrounding them. For instance, 25% of our participants remain unsure about switching, with 33% revealing that they prefer the familiarity of traditional branches.

But do perspectives vary much by age and location? Here’s what we found. 29% of 18-24-year-olds have fully embraced digital banking, along with 27% of those 25-34. In contrast, this falls to just 10% amongst those 65+, with 55% revealing that they’d never go fully digital.

When it comes to location, London has seen the biggest shift towards digital banking, with 23% of participants revealing that they’ve recently switched. In contrast, only 15% of those in the West Midlands and 11% in Yorkshire & Humberside have gone digital. Interestingly, many of our participants remain unsure on the topic, claiming that they’d need more information before they’d consider switching.

How often are people visiting their local bank branch? 

With many now favouring online banking, does this mean they never visit a branch in person? Well, we found that foot traffic has noticeably decreased, with 29% of participants admitting that they haven’t visited a physical branch in over a year. 22% said they have visited once or twice, however it’s rare, as they now carry out all required tasks online.

23% said that they’ve visited a physical branch in the past month to make a deposit, withdrawal, or transfer, with 18% revealing that they only visit when they need to resolve an issue or collect documents.

A significant 33% noticed that various branches have closed down, while 19% aren’t particularly concerned about this due to the convenience of online banking. 12% also mentioned that despite some branches remaining open, these now offer reduced services.

41% of those from the South West said that many branches have closed in their area, along with 42% of those in Scotland. In areas like Eastern England however, there appears to have been less of a decline, with only 24% noticing closures.  

What are Londoners’ opinions on mobile banking?

Next, do sentiments in the capital differ from the rest of the country? Let’s do a deeper dive into some location-specific insights.

23% of Londoners have already made the switch to digital banking, with a further 32% revealing that they would consider going branchless. In contrast, areas like Chelmsford and Portsmouth show lower rates, with only 3% and 7% having made the switch. London also has one of the lowest reluctance rates to switch (21%), compared to areas like Leicester and York where 50% of participants expressed hesitancy. And in places like Carlisle, this rises to 75%!

When asked about their last visit to a bank, 20% of Londoners haven’t visited one in over a year, similar to cities like Edinburgh (21%). This rises to 45% in areas like Sheffield, where more and more people are turning to online banking.

While Londoners have noticed less bank closures (33%), in areas like Leicester over half of participants have noticed closures. Having said this, 19% of Londoners said that they may not even notice as they have now gone fully digital.

Only 21% of Londoners prefer traditional banks compared to the national average of 33%, and this preference aligns with the city’s tech-savvy culture.

What SMEs can do to tap into the growing preference for digital banking?

So, how is this shift towards digital banking beneficial for SMEs? Well, opening a digital business account offers several key advantages:  

• Convenience and accessibility: With digital banking, small business owners can manage their finances anytime, anywhere. From making transactions to monitoring cash flow on the go, everything can be done quickly and efficiently.  

• Expense management: Digital banking helps you stay in control of your spending. You can monitor expenses, set up Direct Debits, and even schedule payments to suppliers in advance.  

• Extra tools: Many digital banking apps offer useful features like invoice creation, QR codes, and payment links. With the SumUp app, you can also scan your receipts and attach them to specific expenses, helping you stay organised.   

Nicolas Vrillaud, Marketing & Growth Leader at SumUp commented on the report, saying- “At SumUp we’re passionate about creating a world where everyone can build a thriving business. Banking is an integral part of building and running a business, and unfortunately the way it’s delivered is often seen as a pain point by SMEs. We conducted this survey to better understand evolving banking preferences in the UK, and observed that whilst digital banking services adoption is increasing there is still a lot of work to be done to convince the majority of consumers and businesses to make the switch.”

Well, there we have it: our insights on evolving UK banking trends as well as how small businesses can tap into growing digital preferences.