UK Banks Neglect Online Savings Accounts

In a recent study by Marketing Week, a UK marketing magazine, it was concluded that UK banks are not doing enough to help an increasing number of customers open online savings accounts.It was revealed that there are a number of UK banks and building societies which do not allow new customers to apply for savings accounts online. In a survey by Global Reviews, four of twelve major UK banks – Lloyds TSB, Barclays, Nationwide and Ulster Bank – only allowed existing customers to apply for savings accounts. The survey also revealed that 59% of higher income earners and 42% of those on lower incomes used the internet to open their most recent savings account. Banks that do not offer online savings accounts for new customers are therefore at a significant disadvantage compared to banks that do.

Marketing Week also discovered that UK banks were failing to supply customers with the basic and correct information they needed to open the accounts. The majority of surveyed banks neglected to tell potential customers how long the application process would take, what material was needed to open the account and what would happen once the completed form was sent.

Since 2003 there has been a steady increase in the number of savings accounts opened in the UK, spurred on by the Bank of England’s decision to raise the base rate four times since August 2006. Financial institutions, which are particularly keen on targeting high earners that use the internet the most, would be well advised by the report to fill any gaps in their online savings products.

To see the report in full visit Marketing Week’s website.