LEAP TO ONLINE BANKING SOUNDS DEATH KNELL FOR HIGH STREET BANKS

• One in three people say that having access to their finances online is essential to the way that they interact with their bank
• Over a half of savers would now choose to get investment advice online
• The era of ‘Captain Mainwaring’ personal banking is over
Millions of savers now prefer to manage their finances online, a new study suggests. Nearly one in three Britons (29 per cent) view accessing their accounts through websites and apps as “essential” to the way that they interact with their bank or building society.(1)
The study, which comes as Lloyd’s bank announces the closure of 200 branches, will be seen as a further blow to high street branches.
While, one in five investors (20 per cent) already see it as essential that they can manage their portfolio online, the research also found that over half of savers (51 per cent) would consider investing the money, if there was a service that could offer financial advice online and that allowed them to securely invest their money without having to speak face-to-face with an adviser.(2)
Chris Williams, CEO of Wealth Horizon, which conducted the research, said: “People very rarely have a personal relationship with their bank manager any more. The era of ‘Captain Mainwaring’ is at an end.
“While there will always be a need to have access to personal interaction for certain circumstances, technology has developed to a point whereby banking online is both safe and easy to use. People now feel much more comfortable with managing their own finances online.
“A while ago, high street banks were closed due to the cost of maintaining their presence, now they are closed because the need for them is less prevalent. Technology now affords us more options.
“Personal banking is just the beginning. Following the almost universal use of online banking and the increased use of mobile payments, the next natural step in the technological evolution is to start to receive full, regulated, financial advice online. By moving finances online, people will start to receive a more personalised service that is both competitive and more accessible”.
Wealth Horizon, is the first service in the UK to provide responsible and regulated investment advice online. The new advisory service will put an end to the advice gap, making investing more accessible and affordable to all, by allowing customers to access as much or as little investment advice as they wish via its website.