UK digital banking trends to look out for in 2022

Nomo Bank

4 Jan 2022

The UK is widely seen around the world as a centre for banking innovation and excellence. With hundreds of years of history in the financial sector, and new banking organisations springing up every year, the UK perfectly blends prestige, security and convenience in its banking landscape.

If you want to keep up with the latest banking global banking trends, then keeping an eye on what’s going on in the UK is a great start.

Here are some of the major trends to look out for in UK digital banking in 2022:

Cashless transactions will continue to dominate

Just like consumers in many different parts of the world, people in the UK have been rapidly switching to digital transactions over the past few years, and the global pandemic has accelerated this shift.

It has been predicted that just 7% of in-store payments in the UK will be made using cash by 2024.

It is now common for businesses to only accept digital payments across the UK, and on British public transport, you won’t get very far if you don’t have a digital payment option!

In October 2021, the contactless limit in the UK was raised to £100, making the payment experience even faster and smoother while you’re shopping in London and the rest of the UK.

More customers will switch to mobile payments

Mobile wallets, including Apple Pay and Google Pay, are extremely popular in the UK. More and more people are choosing them so they can pay conveniently using their smartphones, without needing to take their debit or credit cards with them wherever they go.

32% of the UK adult population had registered for mobile payments in 2020 – an increase of 7.4 million people (75%) compared with the previous year, and the trend is set to continue throughout 2022.

Digital wallets such as Apple Pay make transactions more secure for users because they add extra layers of security to your transactions. Mobile payments use fingerprint or Face ID to verify transactions, and your card number and identity aren't shared with merchants.

Digital-only bank accounts will become more common

The number of people swapping their traditional bank accounts for digital ones has never been higher, and this is likely to continue in 2022. A customer can open a UK bank account within minutes, thanks to the simple application processes of UK digital banks.

Two-thirds of people in the UK now use mobile banking apps more often than compared with before the global pandemic.

A UK digital bank account gives customers total control over their money 24/7, no matter where they are. The rise of digital banks has happened at the same time as the rapid closure of bank branches in the UK, which continues to happen at a rate of around 50 per month.

People will access a wider range of services through digital accounts

More and more financial services in the UK are becoming available to consumers through digital channels, and 2022 will see the digital expansion of different types of financial services.

82% of UK-based global financial services firms expect to increase fintech partnerships in the next 3-5 years, creating the potential for a wider range of financial services to be available to UK customers through digital accounts.

A few years ago, fintech services were limited to just banking and payments. Now, UK customers can access investments, mortgages, loans and insurance all digitally through clear and simple mobile apps. These allow holders of UK bank accounts to grow their wealth and explore avenues such as property investment in the UK, all from their mobile.

Join the future of UK Islamic banking

If you want to securely build wealth, a UK bank account is the perfect home for your money.

Residents of Kuwait now have the unique opportunity to open a UK-based account thanks to Nomo, the world’s first fully digital international Islamic bank.

Here are some of the benefits of UK banking with Nomo:

● GBP and USD Current Accounts

● FREE spending in GBP

● FREE international debit card

● FREE cash withdrawals in the UK

● FREE bank transfers to and from UK accounts

● Investments in GBP and USD through Fixed Term Deposits

● 24/7 control of your wealth through the app

● Account opening within minutes from your iPhone

● FSCS protection on deposits up to £85,000

● Multilingual support (in both English and Arabic)

● LOW, transparent fees for international transfers

● Instant online spending with your virtual debit card

Apply now and follow a step-by-step guide on how to open an online bank account in the UK by downloading Nomo today.