Mind the (data) gap: we need national statistics on people’s banking experiences

By Sharon Collard

Since lockdown, millions of UK adults are reported to have switched to mobile banking as banks close branches or restrict their opening hours and struggle to cope with high call volumes. However, we seriously lack data on how people are coping with banking – both offline and online. From a policy and advocacy perspective, these important data gaps need urgent attention, especially as the UK’s ‘new normal’ will almost certainly mean ‘online’.

The UK has pretty good data on people’s internet access and – by extension – their capacity to bank online. This also tells us who the banks are leaving behind in their digital transformation programmes, which have been given an extra boost by COVID-19.

According to Ofcom, while 90% of the UK adult population used the internet in 2018, this falls to 67% among people with a disability. The gap in smartphone use is even bigger, with 78% of UK adults saying they personally use a smartphone compared with just 45% of adults with a disability.

ONS data shows that women and people aged 65+ are also less likely to use the internet. And, while 69% of adults bank online (rising to a whopping 93% of 25-34 year olds), this falls to 47% of 65-74 year olds and 23% of 75-79 year olds – although there are reports of growing numbers of older people registering for online banking since lockdown.

The two most common reasons people gave (pre-COVID) for not using the internet were lack of interest and lack of digital skills. Lloyds Bank estimates that nine million people are unable to use the internet or their devices without assistance; and 6.5 million cannot open apps (which presumably includes banking apps). CapGemini highlights cost as an important reason for ‘digital disconnection’ among young people.

This begs the question: how are non-internet users and others who find digital difficult – including consumers in vulnerable situations who physically can’t get to a bank – coping with banking in lockdown? Despite interesting innovation, the worry is that people resort to risky workarounds like sharing their PIN number or bank cards, exposing them to the threat of financial abuse.

There is some excellent ‘lived experience’ data as well as a whole range of new COVID-19 studies looking at its impact on every aspect of people’s lives – including the financial impact. However, none of these seems to shed much light on how people are coping with ‘offline banking’.

It is also hard to find any publicly available data on people’s experience of online banking. The most recent waves of the Financial Capability Survey of UK Adults and Financial Lives Survey (both fantastic data sources) don’t cover online banking in any detail – although future waves may do – and they are biennial. In the meantime, while banks have their own data and can pay for other data, these data are not freely or publicly available.

From a policy and advocacy perspective, these data gaps need urgent attention, especially as the UK’s ‘new normal’ will almost certainly mean ‘online’.

1 thought on “Mind the (data) gap: we need national statistics on people’s banking experiences

  1. Great blog article. The rush to digital – exacerbated by the pandemic – isn’t always a good thing and even for those who are digitally-active, isn’t preferred in every situation. The reduction in branches is reducing the physical touchpoint, and again presents risk to those who Lloyds refer to as having low and very low digital engagement and who may also have limited financial capabilities. My personal view is that it is important now that we all get a deeper understanding of how these tech-driven shifts will impact all parts of society, how businesses could act to promote better financial wellbeing, and how consumer choices can be met in modern society. Thanks for sharing the blog..

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