Banking customers are increasingly opening multiple accounts, particularly the younger generations, with up to a third of Millennials and Gen-Zs having opened at least two new accounts in the past 5 years.
New research, commissioned by digital banking software provider CREALOGIX, found consumers are attracted by mobile features that improve convenience, functionality and control.
Gen-Zs (survey respondents aged 18-21) are particularly active in opening new accounts; 81% would consider opening an additional bank account in the next three years, dropping slightly to 75% of Millennials.
These younger generations are driving the rapid adoption of challenger banks, with a quarter of those under 37 surveyed already using mobile-only challenger bank accounts. The research found that Monzo was the most popular with Millennials.
Mobile banking features attract new account signups
When asked what they look for when opening a new account, respondents overwhelmingly responded with feedback relating to mobile banking user experience, including convenience, functionality and easy control over their account.
Under 37s are particularly inclined towards mobile banking features, with 83 per cent of Gen-Zs and 76 per cent of Millennials stating that access to certain desirable features would attract them to try out another bank.
Gen-Zs will soon make up the largest demographic cohort, so user experience innovations pioneered by challenger banks are set to provide them a strong advantage in continuing to win market share unless high street banks are able to offer more feature parity.
“With the recent anniversary of the Open Banking initiative, our research found that the directive has had a positive impact on overall competition in the retail banking market, and customers are increasingly trying out new bank accounts,” explains Anton Zdziebczok, Head of Product Strategy at CREALOGIX UK
“This comes as good news for financial regulators, who have been fighting in the 10 years since the financial crisis for more consumer choice and innovation in the highly concentrated UK retail banking market.
This increased competition encourages innovation, ultimately delivering the best experience to the consumer. However, where the agile, mobile-first banks are using technology to win new customers, the incumbent banks have been slower to adapt.”