We recently hosted a webinar to review recent events in the UK savings market and discuss our consumer data, giving insights about what reviewers want from their savings provider, and how you can avoid your customers being part of the great savings switch of 2024!
Along with me hosting, our panel included:
Amelia Murray: Deputy Editor - Be Clever With Your Cash
James Blower: Head of Savings - Zopa
Colin McDougall: Head of Strategic Delivery - Great Western Credit Union
So what did our data tell us?
Savings sentiment peaked in April, declined in May, and has since stabilised whilst Net Promoter Score (NPS) peaked at +92.56 in April, dropping to +88.74 by August 2024.
Customer perception of fair treatment rose from 96.7% in March to 98.1% by August 2024 and customer service ratings improved from 4.67/5 in March to 4.88/5 by August 2024, both metrics which should be applauded and shows savings providers putting customers at the heart of their businesses.
Customers ranked ease, mobile application experience, customer service, security and product variety amongst the categories with the highest sentiment. On the flip side, account fees, access, complaints, ethical and process received the lowest average sentiment scores.
During the webinar, we also discussed the differences in engagement between web-based and app-based savings platforms, with younger generations preferring apps.
Other key findings during our research found:
88% of savers are considering switching providers, primarily to earn a higher interest rate (68%)
45% feel they aren’t rewarded for loyalty by their current provider
Despite this, most savers have stayed with their current product for nearly six years
Loyalty is driven by valuing the provider’s good reputation (32%) and positive customer service (25%)
11% want to switch to avoid exceeding their personal allowance
Only 56% of savers know their current interest rate
With regards to switching providers, the key barriers for customers were:
31% prefer staying with a familiar provider over the risk of a new one
24% think it’s not worth the hassle to switch
17% are overwhelmed by the number of savings products available
We also asked savers why they saved, and 54% said for emergencies or a rainy day fund. So, over half of customers prioritise savings for unforeseen circumstances, highlighting the need for easy access and flexible savings products.
45% said they saved for long-term retirement savings, so future security was paramount indicating a market for retirement-specific accounts that offer competitive returns.
Finally, 41% said they saved for holidays and travel, meaning a significant portion of savers earmark funds for travel, suggesting a potential for holiday savings accounts or travel-related rewards.
It’s no surprise that of those seeking to switch, a high proportion (35%) are doing so to earn a higher rate of interest – with 22% seeking to earn better rewards and benefits. Also, some were seeking providers with a high street presence.
Why people stay with an existing provider is a much more mixed response. Reasons include ‘current provider has a good reputation’, ‘I have other products with the provider and want to keep everything in one place’ and ‘I don’t have time to look around for a better deal.’
Therefore, our five key takeaways from the research are:
- Enhance digital experience and accessibility
- Offer competitive and tailored financial products
- Focus on customer service excellence
- Leverage physical branches for community engagement
- Implement reward and loyalty programs
In addition, during the webinar, we looked at the importance of financial education, addressing topics such as the resurgence of cash usage and the role of piggy banks in teaching children about saving. Auto-enrolment for savings at the workplace was also seen as important.
We finished on discussing the potential of non-financial incentives, such as rewards for saving to encourage regular saving, plus in-app rewards and goals to motivate savers.
In conclusion, we all agreed the importance of making saving habits enjoyable and rewarding to maintain customer engagement.
Rewatch the webinar in full here.
