The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
Every so often, a research report is published that breaks new ground by providing truly fresh and disruptive insights into an area of vital interest to financial services companies. One such piece of research was published recently by Accenture in collaboration with Lloyds Banking Group: the Lloyds Bank UK Consumer Digital Index 2016.
Building on the success of the Lloyds Bank UK SME Digital Index that we’ve published with Lloyds Bank for the past two years, our new study takes the proven approach used in that research, and turns the spotlight squarely onto consumers. In it, we observe and analyse trends in consumers’ digital and financial capability and – for the first time – investigate and pinpoint the links between the two from a UK-wide perspective.
As the largest longitudinal study of financial and digital capability ever conducted in the UK, this was clearly a major undertaking. And to make it as comprehensive and accurate as possible, we worked in association with partners including the digital skills charity Go ON UK, and Toynbee Hall, a charity that works tirelessly to create a future without poverty. The result of our combined efforts is the UK’s first behavioural data-led study of one million consumers’ digital and financial capabilities – and a Consumer Digital Index that has been baselined to enable it to be updated annually from now on.
So, what approach did we take in conducting this research? We based it on three key pillars of information:
Having amassed all this data, we then cross-referred and analysed it to identify a wide range of correlations – such as between people’s levels of digital and financial capability – and the impacts of additional factors such as age. The results bring many striking findings and implications for banks.
For example, we found that being more digitally capable can help consumers make the most of their financial circumstances – but also that having greater financial capability does not necessarily drive consumers to use online tools and services. People’s age is a far more influential factor on their Consumer Index scores than the region where they live. For example, a staggering 47% of people over 60 told us that “nothing would help me get online” – a finding that provides much food for thought for banks rolling out online services.
So, what should banks do differently in response to our findings? In my second blog on the Lloyds Bank UK Consumer Digital Index 2016, I’ll examine our recommendations for banks springing from this report – focusing particularly on what it means for their digital agendas.