The public sentiment toward banks and financial institutions isn’t always positive. With financial crunches happening everywhere, many consumers require more financial aid. But, unfortunately, Britons feel their banks aren’t doing enough to make that feat possible.
Many Britons Struggle Financially
The end of 2022 and the first half of 2023 will create financial problems for many companies and consumers. Living costs remain very high, and goods, products, and services aren’t necessarily getting cheaper. In addition, the war between Russia and Ukraine still rages on, and trouble might brew in the Middle East regarding oil shipments. It is a very uncertain outlook for everyone involved, and banks must do their part to help.
A recent survey among Britons found that traditional banks’ appreciation was very low in late 2022. More than two in three respondents aren’t happy with their financial institutions. Especially the concept of support in managing finances could be better. That seems strange, as many banks commit to helping users with money-saving tips. However, the landscape differs from country to country, and things may not be as rosy in the UK.
Those survey results are easy to explain. As more than half of Britons struggle to save money during uncertain times, their demand for guidance will be more outspoken. However, financial institutions are notoriously bad at identifying client needs ahead of time or even during times of crisis. Fintech outfits may fare slightly better, as they often have better customer relations and engagement.
Another contributing factor is the ongoing shutdown of bank branches. Visiting a financial institution in person has become very difficult in recent years. Whereas one might find five bank branches in a city, many regions have one or fewer. As a result, the human connection between Britons and their banks has vanished, making it harder to trust these institutions. In addition, most banks must double down on advertising new cost-saving measures for their clients, either digitally or otherwise.
Fintech Picks Up The Pieces
In the same survey, over half of fintech users opened a new bank account or product in 2022. They often do so online, as it is very convenient and accessible. More importantly, Britons do so without consulting a bank, expert, or other providers. Instead, they do their homework and make judgments based on the available information. Fintechs providing reasonable rates and other incentives gain a competitive edge in this landscape.
As the interaction with finance changes, banks will face many new challenges. Retaining customers has been difficult and will become more so in the coming years. If customers don’t feel appreciated or can’t access the right aid, they can easily switch to a new provider. Handling personal finances is daunting, and many people want help. It is up to service providers to offer the necessary options.