Research from Capterra shows that 90 percent of small businesses and freelancers currently using traditional banks would consider switching to a digital bank
LONDON–(BUSINESS WIRE)–Capterra, which helps businesses confidently find and get the most out of technology, has revealed the results of a study analysing the banking habits of small businesses in the UK.
The study has found that only 23 percent of respondents currently have their main business account with a digital bank, however the remaining 77 percent that use traditional banks would consider switching to a digital one. When looking to choose a bank, the respondents mentioned trust (68 percent) and recommendations (21 percent) as the most important decision-making factors. Therefore, people who already have a personal account with a digital bank were more willing to switch their business one as well.
When asked about the main benefits of a digital bank, most of the respondents cited ease of use, along with flexibility and cost. While some prefer face to face communication with their bank representatives, others considered not needing to book an appointment and travelling to a bank as an advantage.
Although the majority of small business owners and freelancers (57 percent) are using a mobile app to access their business bank account, 82 percent of respondents still think it is important for a bank to have a physical branch. The need to speak to a real person was mostly desired by the respondents when looking for more advanced services, such as financial advice and business loans.
Sonia Navarrete, content analyst at Capterra comments:
“Sole traders and micro businesses are still choosing traditional banking for their primary business account. However, there is a growing trend in adopting digital banks. The flexibility and ease of use associated with this type of banking has proved to be the most significant advantage for the fast pacing industries and busy sole-traders.”
Capterra helps organisations around the world find the right software for their needs. Founded in 1999, Capterra’s global product footprint, verified user reviews backbone, independent research, and tailored comparison tools, provide more than five million in-market buyers with a confidence-building discovery experience every month. For more information, visit capterra.co.uk.
The questionnaire included 607 respondents. For more information on the study and methodology, visit our blog.