Digital banking - normal by 2015

Customers will be prepared to spend £10 a month for services that deliver convenience and value.

A new report by PriceWaterhouseCoopers 'The new digital tipping point'  says banks have been too slow to respond to digital developments despite strong demand from users.

The report cautions that the banks are behind the public on new media. It questioned over 3,000 banking customers across nine markets and found people willing to pay up to £10 a month for digital banking services such as social media notifications and an electronic wallet for loyalty cards.

The good news for traditional banks is that the public still trusts them, rather than 'over the top' newcomers to manage their money.

The report revealed 61 per cent still trust their banks over other providers with their current account.

Matt Hobbs, retail and commercial banking partner at PwC, said: "Generation Y are now choosing their main banking provider and represent an important source of future value for banks.