With bank branch closures continuing to attract headlines across the UK, new research has found that most British consumers value banking apps over physical branches.

In a study of the habits, behaviours and preferences of UK banking customers, global data analytics company FICO found that banking apps are now the most important or second most important feature of consumers’ primary bank accounts.

Based on a survey of 1,000 adults across the UK, FICO’s latest Bank Customer Experience Survey found that 75% said a good phone app was an important factor for their primary banking provider, while even more (78%) said their bank having a good website was important, compared to just 33% that cited the need for a local branch.

However, the polling found that despite being eager for better banking tech, more than 80% of consumers are still receiving their banking services from a traditional bank, versus just 12% now using a digital-only bank as their primary provider.

While the majority of banking customers might have two or three bank accounts, most have one primary account, which FICO found was chosen for the length of the relationship alongside positive experiences.

Although accessibility to primary providers is important, the research shows that the advent of improved communications and apps has changed consumer expectations.

According to FICO’s study, 64% of consumers believe customer service is as important as the products or services their bank supplies, with 80% saying that having the ability to talk to real people is important.

That’s despite most UK banking customers preferring emails, text messages and app notifications to phone calls for communications like fraud alerts, ID verifications, and overdue payment notices. 

The report claims this is evidence that banks should look to find the right balance between digital solutions and customer service, with the warning that, currently, chatbots are less appealing to consumers than real human interaction, with just 35% saying this service was valuable to them.

As AI continues to evolve, FICO argues that banks must invest in technology which can combine digital solutions with personalised, seamless omnichannel customer support capable of resolving consumer queries quickly and conveniently, improving satisfaction while reducing call centre requirements.

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“Although banking apps have become more important to British customers, it is vital that banks recognise that they can’t rely on them entirely,” said Mark Whale, financial services partner at FICO.

“A strategic balance between apps and human interactions is critical. Used intelligently, AI can prove invaluable in creating better customer interactions as customers move across to apps. 

“Using analytics to determine the best channel for each individual customer will help brands be more strategic in all areas of communication with their customers, and ensure they foster positive customer experiences and lasting relationships.”