New research has revealed that UK consumers are adopting digital and online banking more than their counterparts in the EU.

Research commissioned by CRIF polled banking customers across France, the Czech Republic, Italy, Germany, Slovakia, and the UK, to better understand their attitudes towards financial services.

Data revealed that consumers in Britain are nearly twice as likely as other Europeans to apply for financial products and services online, including through online chat or video call functions (59% vs 33%).

In Europe, more than half of consumers still prefer to apply for new financial products, including current accounts, credit cards or loans, at a physical bank, the research found.

However, in the UK, this number is substantially less, with only around 23% saying they prefer to go in-person over online banking.

Open banking in the UK has seen a marked increase over the last few years, with research from June this year establishing that the number of open banking customers had reached 6 million users.

Data revealed that open banking payments are growing 500% year on year. May 2022 saw businesses and consumers make 5m open banking-driven payments.

Sara Costantini, CRIF’s regional director for the UK & Ireland, commented: “In a digitally dominated world, the way in which we go about our daily lives has changed. And nowhere more so than in banking and financial services.

“Our research shows that the UK leads the way in Europe when it comes to embracing digital and online methods, but there is still more we can do to utilise digital technologies to help more UK consumers to manage their finances.

“While some are reluctant to share data as they are worried about fraud and security, we should work to allay these fears. Technologies such as open banking are not only safe but can lay the foundations for increased financial support during the current economic crisis.”

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Despite the boost in digital banking use, Costantini noted that providers must do more to educate their customers about the benefits of online and other digital forms of banking.

This would not only help them during the cost-of-living crisis, but also to drive widespread financial wellbeing and inclusion, she said.

With the cost of living now a real concern for people in the UK and finances stretched, the research suggested several ways banks can provide consumers with better services

More than two-thirds of UK consumers are worried that sharing financial data leaves them more open to fraud. This underlined the need to educate and reassure customers that innovations like open banking have high security standards and enables a range of consumer benefits.

Around a third of people in the UK said they would be prepared to share more financial information if it helped providers to better assess their financial situation and improve their ability to borrow (35%) or increase their credit limit (31%), despite concerns.

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