By 2015 bank customers will use digital banking more than they use branches according to ‘The New Digital Tipping Point’ report from PricewaterhouseCoopers.

The survey, of 3000 people in nine countries, suggests that customers are willing to pay up to £10 a month for online banking if they receive convenience and added-value services.

These could be services such as financial management tools, transaction notifications through Twitter, Facebook and other social networks, and loyalty cards.

Two thirds of UK respondents to the survey said they would pay around £4 a month for a loyalty card which would allow them to collect points that they could convert into cash.

The survey suggests that banks are lagging behind industries such as retail and travel in using technological developments to improve their services.

It also suggests that in the UK, the “optimal” price for digital banking would be £4.20.

At this price there would be widespread take-up of the service among customers.

In a statement, Stephen Whitehouse, a partner at PwC, said: “Banks are clearly missing a trick if they don’t start to invest in their digital offerings and only see digital as a way to reduce costs.

“The majority of banks still only provide basic mobile and Internet banking services.”

In related news, UK banks were told by the Chancellor of the Exchequer today that they should reduce pay in order to fund regulatory reforms.

Reforms to protect against banks’ financial failure have been proposed by the Independent Commission on Banking and are expected cost UK banks up to £10 billion.

Speaking to MPs on the Treasury Select Committee prior to the annual bank bonus round Mr Osborne said that banks should not absorb these costs by increasing the cost of lending but should reduce their remuneration, including bonuses.