Lloyds Bank has issued an alert to UK households, suggesting they could save an extra £3,500 over a decade by using digital banking tools. The bank's research indicates that widespread adoption of such tools could unlock approximately £100 billion for households across the country over the next ten years.
How digital tools can help
The bank recommends customers use their banking app to receive alerts about bills and nudges on managing their finances. This could help households better track spending and identify savings opportunities.
Jas Singh, head of consumer relationships for Lloyds' retail bank, noted that while some customers seek advice on managing bills, there has not been a significant surge in people cancelling subscriptions. However, he observed that people are saving a bit more. Singh emphasized the importance of providing contextual suggestions based on individual life circumstances, rather than intrusive notifications about specific purchases like coffee.
New customer growth
Lloyds, which operates branches in Birmingham, gained 12,000 new customers in the first quarter of the year through the Current Account Switch Service (CASS). This service automatically moves payments to a new account and offers a guarantee against financial loss if something goes wrong with the switch.
John Dentry, product manager at Pay.UK, which owns and operates CASS, commented on the ongoing economic turbulence and anticipated continued high levels of account switching as interest rates rise. He noted that higher savings rates are a key driver of consumer movement, and a flurry of activity could follow if previous offers return to the market.
