UK current accounts: CREALOGIX advises banks to get to know their customers better or risk losing out

22 January 2019

A new survey of UK current account holders by CREALOGIX has revealed that less than one in ten UK consumers recall being asked anything about their lifestyle or purchasing preferences by their bank over the past year. This is in stark contrast to the importance of personalisation in customers’ choice of bank account provider: 46% of survey respondents stated they would be more likely to try out a new bank account if it provided personalised features based on their preferences and lifestyle.

This jumps to over 70% among Gen-Zs (people aged 16-21), showing the heightened importance of personalisation for the younger, digitally demanding customer raised on smart data-driven recommendations from the likes of Amazon, Netflix, and Google.

In their analysis, CREALOGIX identified a reliance on legacy technology as a friction to better personalisation of digital banking: “Established banks struggle with decades-old technology which was never designed for creating the complex picture of individual customers which is required for smart personalisation,” said Jo Howes, Commercial Director at CREALOGIX UK.

According to CREALOGIX, banks need a new layer of technology solutions above their core systems which can unlock the value of customers’ data and deliver benefits back to them. Despite the overall low rate of feedback collection by UK banks, the survey of current account holders revealed that Gen-Zs and Millennials are over seven times more likely than older generations to recall being asked personalisation and lifestyle questions by their banks. CREALOGIX attributed this to the higher proportions of younger people using mobile banking from providers which compete by offering more personalisation and lifestyle features. A quarter of under-37’s surveyed are using mobile-only challenger bank accounts.

In the report, CREALOGIX advised retail and private banks to look beyond dependence on legacy systems, embrace open banking, and work with external solution providers to reduce technology costs and speed up the delivery of improvements to customer experience.

“A modern, highly customisable mobile user experience platform is a must-have for the modern bank, enabling flexible, ongoing collection of preferences and feedback. This can then be translated into personalised communications that are relevant for customers and keep them engaged,” stated Jo Howes, Commercial Director at CREALOGIX UK.

Visit crealogix.com to read the full survey findings and analysis: https://info.crealogix.com/crealogix-uk-banking-challengers-survey-report-2019

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