New research suggests that using digital banking features more intelligently could save UK households around £3,500 over ten years. The study, commissioned by Lloyds Banking Group and led by Professor John Gathergood of the University of Nottingham, found that tools such as budgeting alerts, mortgage and credit card deal comparisons, and debt management advice can help reduce unnecessary costs and improve returns.
Professor Gathergood said the findings indicate that smarter use of banking apps could unlock approximately £100 billion in economic value for the UK over the next decade. He noted that most adults in the country now use digital banking, including a majority of those over 70, and encouraged everyone to take advantage of these features as they become more widely available.
The research identifies seven key areas where digital banking can currently or will soon help customers save or make money. These include investment opportunities, better debt management, mortgage switching, and credit health improvement. For example, apps can nudge users to consider investing in stocks and shares instead of leaving savings in low-interest accounts, or suggest paying down credit card debt with available savings.
Jas Singh, CEO of consumer relationships at Lloyds Banking Group, said that if digital banking makes it easier to switch mortgages, manage debt, or build savings, the benefits can accumulate significantly across millions of users. The report stresses that savings will build gradually as digital tools become more personalised and integrated into everyday life.
