Year Published: 2022
Date Published: 03/02/2022
Author/s: Lloyds Bank
Research Link: https://www.lloydsbank.com/assets/resource-centre/pdf/businessdigitalindexreport.pdf
Methodology: Data matching Each of the 1,968 businesses surveyed are anonymously data matched with their transactional data to allow a richer, in-depth level of analysis and comparison of actual behaviour versus attitudes and perceptions.
Essential Digital Skills In 2018, the UK consumer measure of Essential Digital Skills (EDS) was published following an extensive public consultation in partnership with the Department for Education. Considering this, Lloyds Bank consulted with 40 cross-sector organisations and shaped an equitable small business Essential Digital Skills framework, ensuring it fully reflected the range of skills organisations need to safely benefit from the digital world of today. The first view of EDS for small business was published in 2019 (with 2021 providing the first year-on-year view) and is no longer comparable to the previous Basic Digital Skills measure. The Essential Digital Skills measure varies from the Index score as it is solely based on quantitative data.
Key Takeaways:
Compared to 2019, there have been some sizeable shifts in behaviour:
• One-fifth more of businesses are now using Internet and mobile banking
• 30% more businesses now have the highest digital capability (49% to 64%)
• 40% more now use digital training tools (29% to 48%)
• 33% more use online accounting software and cloud-based IT systems (42% to 56%)
• 15% fewer businesses are creating and maintaining websites (68% to 58%), and therefore relying more on social media
However, survey and verbatim responses show the biggest shift is in mindset.
• Over three-quarters of businesses now believe that having a smartphone is crucial for their success, up from 63% in 2019
• 61% also intend to continue new digital habits started during the Covid-19 pandemic
• 57% of businesses admit they are using technology through necessity rather than choice
• 50% more businesses now have a dedicated internal team for digital development and use external support than in 2019 (33% to 50%)