Little enthusiasm for paid-for bank accounts

October 24, 2014, 1:54 PM GMT+0

The majority of UK current account customers would find giving up free banking hard to swallow, new research by YouGov shows.

Nearly nine in 10 (89%) current account owners agree that standard or basic current accounts should always be free. In comparison, only a quarter (25%) would be willing to pay a monthly fee for a current account that offers a range of additional services.

The “Current Accounts 2014” report takes an in-depth look at current account ownership, highlighting the type of accounts people own and with which providers. It also takes a look at general consumer attitudes towards current accounts, which features are considered most important, and how satisfied customers are with their main providers.

Additionally, the report explores how the internet has altered the relationship between customer and provider, and how mobile banking is leading to further changes. It also focuses on the market’s competitive landscape, examining attitudes and behaviours towards switching.

YouGov’s research also emphasises the rise of challenger brands. Despite criticism from regulators that the current account market isn’t competitive enough, two-fifths (44%) of consumers report that they would be comfortable holding their current account with a non-traditional provider. This figure rises to over half (55%) of 25-34 year olds and six in 10 (59%) in households earning £50,000 or more a year.

Looking at customer behavior and satisfaction, YouGov’s report also revealed the importance of mobile banking solutions, particularly amongst younger customers. Almost two in five (39%) 25-34 year olds already use online banking via a smartphone to manage their account, 26% use a smartphone application to access bank accounts and 27% use a tablet for online banking.

Image from PA