For decades, savings providers have competed on a familiar battleground: interest rates. And whilst rate remains important, consumer behaviour is changing. Today's savers expect more than competitive returns. They want convenience, personalised experiences, intelligent support, and digital journeys that feel as seamless as the best consumer apps they use every day.
The research, customer insights, and market observations point to a clear conclusion: the future of savings will be defined by trust and technology working together.
The paradox of modern banking customers
One of the most interesting findings from a recent research is that loyalty and experimentation now exist side by side.
Seven in ten consumers still look to their existing provider before considering alternatives, demonstrating the enduring value of established relationships. Yet three quarters of consumers now use multiple banking providers, a significant shift enabled by digital onboarding and the ease of opening accounts online.
This creates an interesting challenge for financial institutions. Customers are more willing than ever to explore new providers, but they still place enormous value on familiarity and trust. Being the incumbent still matters, but customer loyalty can no longer be taken for granted. The institutions that succeed will not simply rely on historic relationships. They will actively earn customer engagement through superior experiences.
Why trust is still the ultimate differentiator
Despite rapid advances in technology, one factor remains remarkably consistent: trust. When consumers talk about trust, they are not referring solely to brand reputation. Trust is built through everyday experiences. It comes from clear communication, consistent service, reliability, security as well as and delivering on promises.
This is particularly significant in financial services, as customers are trusting organisations with their money and sensitive personal data.
We've reached a point where digital capability alone is no longer a differentiator. Customers expect it. Just as consumers expect electricity when they enter a building, they now expect digital banking services to be available, intuitive, secure and reliable.
The question is no longer whether an institution offers digital services. The question is how well those services work.
The rise of the digital saver
Consumer expectations continue to evolve rapidly. Three quarters of consumers now use mobile apps to access their accounts, and increasingly those apps are being used for more than balance checks and payments. Customers are becoming comfortable opening accounts, managing products and engaging with providers entirely through digital channels.
Even more interesting is the growing demand for connected financial experiences. Around seven in ten consumers would like to see all of their savings accounts accessible in one app and thanks to ongoing developments such as open banking, this vision is becoming increasingly realistic.
Consumers don't think in terms of products, channels or internal banking structures. They think about outcomes. They simply want a convenient way to manage their finances and so financial institutions that can reduce fragmentation and simplify customer journeys will be well positioned for future growth.
From Digital Banking to Intelligent Banking
Perhaps the most significant behavioural shift we're witnessing is the increasing willingness of consumers to embrace automation. Two thirds of consumers say it would be easier to save if an app automatically saved money on their behalf based on what they could realistically afford.
That insight tells us something important.
Many people understand the value of saving, but establishing and maintaining saving habits remains challenging. Consumers are increasingly open to technology helping them make better financial decisions and this is where artificial intelligence has the potential to become transformative.
Today, AI is already supporting areas such as fraud detection, identity verification, underwriting and customer communication. Tomorrow, it may help customers save more effectively through personalised recommendations, automated transfers and predictive budgeting.
The future may not simply involve digital banking. It may involve intelligent banking.
The gap between consumer expectations and market reality
While customer expectations are accelerating, many financial institutions still have work to do. Sandstone Technology’s research into 117 mid-tier UK savings providers revealed that although 62% offer a mobile app, only 16% currently enable customers to open savings accounts directly within the app.
This represents a significant opportunity.
Customers increasingly expect frictionless experiences. If opening a savings account requires multiple channels, lengthy processes or manual intervention, institutions risk losing potential customers to competitors that provide a more streamlined journey. Digital origination is rapidly becoming a competitive battleground. The organisations that make onboarding simple, intuitive and immediate are likely to gain a significant advantage.
What this means for savings providers
The message from consumers is becoming increasingly clear. Competitive rates still matter, but they are no longer enough on their own. Customers also evaluate:
- How easy it is to open an account.
- The quality of digital experiences.
- The availability of support and guidance.
- The convenience of managing products.
- The level of trust they feel in the provider.
At the same time, acquisition costs continue to rise while switching between providers becomes easier than ever. Financial institutions can no longer rely solely on product competitiveness. Customer experience has become a strategic differentiator.
Looking ahead
The next few years promise significant change.
We expect interest rates to become only one component of the savings decision. Tax efficiency, investment options, digital experiences and intelligent automation are all likely to play increasingly important roles. Trust will remain fundamental, but how trust itself is earned will continue to evolve.
We also expect AI-powered saving tools to move closer to the mainstream. Automated savings recommendations, predictive budgeting and intelligent cash management all have the potential to help consumers build stronger financial habits with less effort.
The institutions that succeed will be those that continuously adapt to changing customer expectations while maintaining the trust that consumers value so highly.
Because in modern savings, the winners won't simply offer the best rate. They'll offer the best experience.
Contact our team to find out more about our solutions.
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