![Story image](https://itbrief.co.uk/uploads/story/2024/07/22/techday_23edc85a6d783ce5e9c4.webp)
A third of Brits face banking tech issues, many may switch
A recent survey has highlighted the significant impact of technical failures within the banking sector, showing that a third of Brits have encountered a technology glitch in the past year. The survey, commissioned by Roq and conducted by OnePoll amongst 1,000 UK adults, revealed that 30% of those affected are considering switching banks as a result.
Paul Darby, Delivery Lead at Roq, commented on the findings, stressing the importance of addressing these issues. "In an industry where governance, regulation, and security are the critical foundations of success, these statistics are a real cause for concern," Darby stated. He added that while digital innovation is transforming the banking industry, the increasing number of technical challenges could undermine this transformation if not adequately managed.
The study further explored generational differences, revealing that younger consumers are more frequently impacted by technical glitches. 19% of respondents aged 18-24 and 17% of those aged 25-34 reported experiencing a technical failure in the last three months. In contrast, just 3% of those aged 55-64 and 4% of those over 65 reported similar issues. This disparity is attributed to younger generations favouring digital-first banks which, if not properly engineered, are more susceptible to such failures.
Darby noted, "As increasing numbers of heritage, bricks-and-mortar banks and financial institutions adopt a digital approach, it’s vital that adequate forethought and implementation of appropriate processes, procedures and client understanding is embedded as early as possible in the solution life cycle." He further explained that a rigorous approach to Quality Engineering is essential for meeting client expectations and ensuring the stability of banking solutions.
The survey also found that younger individuals are more inclined to switch banks following a technology failure. 57% of 25-34 year olds and 47% of 18-24 year olds indicated they would likely change their bank in response to such issues. This is in stark contrast to older respondents, with nearly half of the 45-54 and over-65 age groups stating they are neither likely nor unlikely to leave their bank.
Darby emphasised the urgency for banks to meet high customer expectations, particularly among younger, digitally-savvy consumers. "Banks and financial institutions cannot rest on their laurels; they must ensure they have robust systems and risk mitigation procedures in place to avoid technical failures that could push their customers to competitors," he stated.
Regionally, the survey revealed London residents to be the most affected by technical failures, with 59% experiencing a glitch in the past year. Conversely, the North East appeared least affected, with 70% of residents stating they had not encountered any issues. Regarding the potential to switch banks, Londoners were also the most likely to make a change, with 58% expressing a likelihood to switch compared to just 17% in the South East and Wales.
Concluding the findings, Darby underscored the importance of technological reliability within the financial services sector. "Technology within the financial services sector is a fundamental part of its evolution. However, glitches and failures are becoming more commonplace, putting institutions and their customers in vulnerable situations," he noted. Darby highlighted that effective Quality Engineering is essential for managing these risks and ensuring that solutions meet client needs effectively, thereby ensuring the long-term success and trust in the banking sector.