UK banks need to “hit the reset button and ditch the one-size-fits-all approach” according to new research that found over half of UK SMEs and over three quarters of UK consumers are not satisfied with their bank.

Research by business solutions provider SAP found a variety of customer preferences according to gender, age and company turnover, and increasing demand for personalized services and for support and education, particularly through digital tools. The survey gathered opinion from 2,000 UK consumers and 500 senior decision-makers in the country’s SME sector.

The report concludes: “It’s time to understand better, be more proactive and communicate and engage better.” Those sentiments tie in with the UK’s new Consumer Duty requirement for firms to put their customer’s needs first and to show how they are doing so, and with findings gathered by the FCA’s Financial Lives survey.

Information on lending and funding

Over half (52%) of the SMEs who responded are reassessing the suitability of their current bank. And 53% of those that turn over between £100m ($127m) and £499m ($633m) want better information on accessing lending and funding. Firms that turn over between £100,000 ($126,800) and £999,000 ($127m) want more communication and advice on getting support when things go wrong, with 43% expressing that preference. Some 60% of all SMEs want their bank to invest in analytics and automation to help them derive insights into their operations.

“Customer first is the call of the hour. Banks must accelerate adoption of digital capabilities but in doing so need to ensure that they can communicate enhanced value and experience to the end consumer, both for retail and SME groups,” said Michael Walsh, SAP’s Head of Financial Services, UK.

Gender relevance for personal customers is a growing factor. The survey found almost one in five (19%) women check their account after every transaction, compared with 14% of men. Women are almost three times less likely to have moved funds from online-only providers to high street banks, and twice as likely to ask for more online content featuring financial tips and advice.

Generation Z more likely to switch

Age also comes into play, with those over 55 more than twice as likely to switch providers based on sign-up incentives and better interest rates than those under 27. But Generation Z are more likely to switch banks based on digital experience, with 24% doing so in the last year while only 9% of Baby Boomers did so. Those born since 1965 are also more likely to ask for guidance on where to get support when things go wrong.

“It’s the responsibility of banks to listen and respond to their customers,” said Anuj Kumar, Industry Strategy and GTM lead for Financial Services at SAP, UK. “Customers demand constant, proactive engagement and reassurance across multiple channels, with content that educates, digital tools that empower smarter financial choices, and advice that’s readily accessible and on-demand.

“That’s the modern banking experience that the UK has come to expect, and financial services must keep up or get left behind particularly in an era that is seeing a growth in alternative banking service providers.”