Aussies and Kiwis are ready to switch banks for a better digital experience according to a new report, “Byte-Sized Banking: The App Experience 2024,” which surveyed 1,300 digital banking customers across Australia and New Zealand.
The report reveals that nearly three-quarters (74%) of respondents consider their banking app a significant factor in deciding whether to stay with or switch their banking providers.
The survey highlights high usage rates for banking apps, with more than half (57%) of Australians and New Zealanders using their banking apps between three and ten times a week. Additionally, over a quarter (28%) log in more than ten times a week to check budgets, review savings goals, transfer money, or track spending. Millennials, the most lucrative customer segment, emerge as the most active users, with 65% of 25 to 34-year-olds using banking apps more than six times a week. This demographic also shows a strong demand for additional tools and resources within these apps, with 68% expressing this need.
Overall satisfaction with banking apps stands at 82%. Key factors contributing to this satisfaction include ease of use (81%), accuracy of transaction information (78%), and digital features like transaction search (77%).
Jordan Harris, Head of Innovation at Experian A/NZ, remarked on the findings, stating, “This research underscores the importance of banking apps for customers in Australia and New Zealand. As cost-of-living pressures intensify, the reliance on banking apps for effective budgeting and financial management has never been greater.”
The demand for enhanced banking app features is evident. The research shows that 86% of customers expect their bank to track their spending. While 60% of users primarily seek alerts for unusual transactions or fraud risks, 49% expect additional insights from their banks to help them manage their finances more effectively.
However, challengers notably lag their big four bank rivals in customer satisfaction, with the majors’ apps rated considerably higher (89 per cent) than their challenger banking rivals (at 72 per cent).
In the UK, where Open Banking is more advanced the story is however quite the opposite where challengers are out pacing the incumbents. Following a strong first half to 2024, UK neobanks are now only six million users behind legacy banks with an estimated 62 million lifetime Google Play Store app downloads, compared to the 68 million for UK legacy banks.
UK neobanks added an estimated 9.5 million new Android users in the first half of 2024, 81% more than UK legacy banks which gained only an estimated four million new users. If this trend is repeated in the second half of the year, neobanks will reach 71.5 million app users versus 72 million for legacy banks.