香蕉福利直播

Guest blog: Do savings passbooks still have a future in a digital-first world?

Peter Toole, Strategic Relationships Director at Paragon explores the recent resurgent interest in passbooks and outlines what the future holds for them.

10 years ago, you’d be forgiven for thinking that physical media like vinyl, CDs, and DVDs had gone the way of the dinosaur. Yet, something strange is happening. In 2023, , the largest number since 1990. 

Even the humble tape is having a moment, with for the fourth consecutive year in 2023. Much of this demand is being , many of whom weren’t even born when the first iPod went on sale in 2001. 

‘How’s this relevant to building societies’ you might be asking. Well bear with me. In recent years, we’ve seen several financial organisations scrapping their passbook savings accounts, considering them an expensive relic of a pre-digital era. But, keeping in mind what we’re seeing in other industries, is it time for a re-think? 

Assessing the demand for passbooks

Recent research by the revealed that far from being redundant, there is still significant demand for passbooks, with over half a million of its members using one in branch in 2023. 

And, just as the physical media boom is being driven by younger consumers, the same can be said for passbooks. The Yorkshire Building Society research shows that 16% of people still hold passbooks, but this rises to 27% for people aged 18-24. 

Elsewhere, research from Leeds Building Society shows that would prefer to use passbooks to manage their accounts. Newcastle Building Society, which offers passbooks to all its customers, has It also issued around three times as many passbooks last year as it did in 2021.

What’s behind the resurgent interest in passbooks? 

While retro-nostalgia may play a role in the resurgence of physical media, there is more going on when it comes to physical savings records. With the cost-of-living crisis biting, many bank customers are looking for ways to better manage their money and budget. 

Last year, UK Finance reported that cash payments , the first rise in a decade – attributing some of this rise to fears about inflation and the rising cost of living. Passbooks offer a similar way to help consumers feel connected to and in control of their savings. And, for older consumers without the ability to access online banking, a physical log of incomings and outgoing is particularly important. 

What does the future look like for passbooks? 

The simplicity, longevity and continued popularity of passbooks suggests that they’re here to stay, though we do expect to see continued innovation to keep them relevant in 2024 and beyond. 

Many passbook holders use them in tandem with digital banking tools, so integration between passbook savings accounts and personal finance apps will continue to be a focus. This will make it easier for account holders to set financial goals and track spending, but also to receive personalised recommendations on how to save more effectively. 

Modern printing methods will also continue to bolster the security of savings passbooks through techniques like watermarks, holograms, special inks and microtext – making this already safe banking method even more secure. Who knows, maybe we’ll even see technology like radio-frequency identification (RFID) tags make their way into passbooks in the future, reducing the chance they get lost and have to be re-printed. 

Driven by increasing demand for sustainable products, , we also predict there will be more interest in sustainably produced passbooks. To an extent, this is already underway, with some building societies . And as more banks and building societies scrutinise their Scope 3 emissions, we expect to see a continued drive towards sustainable materials and printing practices. 

To learn more about the themes and topics covered in this article, visit:  
 

You may also be interested in...

香蕉福利直播 Card
  • 香蕉福利直播.Event Event
  • Prudential Regulation

Risk appetite training for credit unions

With increasing regulatory focus on the safety and soundness of Credit Unions, it is crucial that you understand the regulator’s risk appetite expecta...

香蕉福利直播 Card
  • 香蕉福利直播.Newsbite_1 Society Matters
  • Thought leadership

The future is mutual if we want it to be

Featuring many of the brilliant speakers from the Building Societies Conference, with plenty to inspire, challenge, and empower.

香蕉福利直播 Card
  • 香蕉福利直播.Event Event
  • Prudential Regulation

Treasury management training for credit unions

The objective of the course is to introduce participants to the role of Treasury, providing an introduction to financial markets, yield curves and how...

香蕉福利直播 Card
  • 香蕉福利直播.Event Event
  • Audit & Taxation

Risk, regulatory, audit and accounting seminar

After a successful in-person event in 2024, and responding to delegate feedback, this year's annual update will once again take place in Birmingham. ...

香蕉福利直播 Card
  • 香蕉福利直播.PressRelease Press Release
  • Prudential Regulation

香蕉福利直播 responds to Bank of England announcements

Responding to today's announcement from the Bank of England, Ruth Doubleday, Head of Prudential Regulation at the 香蕉福利直播 said: "The 香蕉福利直播 welcomes the c...

香蕉福利直播 Card
  • 香蕉福利直播.Event Event
  • Thought leadership

Navigating Uncertainty: Omnichannel Customer Communications That Build Trust in Financial Services

A free webinar hosted by 香蕉福利直播 Associate, Quadient We’re excited to invite you to our upcoming thought leadership webinar: "Navigating Uncertaint...

香蕉福利直播 Card
  • 香蕉福利直播.PressRelease Press Release
  • Savings

Open letter to the Chancellor to save Cash ISAs

Open letter to the Chancellor highlighting the importance of retaining the Cash ISA limit

香蕉福利直播 Card
  • 香蕉福利直播.PressRelease Press Release
  • Savings

香蕉福利直播 comments on the news that reform of Cash ISAs on hold

The 香蕉福利直播 welcomes the announcement