While most consumers prefer online or mobile banking, branches are still very much alive according to a surprisingly high number of banking consumers surveyed by Harris Poll for Brookfield, Wis. Fiserv.
The study of more than 3,000 U.S. banking consumers, conducted in March 2016, also revealed digital channels accessed far more often for day-to-day interactions by consumers who increasingly expect credit unions and banks to provide services on-demand and on their terms.
The survey revealed 53% of consumers preferred online or mobile banking for standard daily transactions, but 61% still visited a branch many transactions in the last month (March 2016).Yet, 41% said they preferred a traditional branch while two percent chose a fully automated branch with no personnel on site.
More than 80% of consumers logged on to their primary financial organization’s banking site in the last month, averaging just over 11 visits each. Another 61% said they visited their primary financial organization’s branch in the last month.
Common reasons for visiting a branch included to deposit checks (68%), withdraw cash (51%) or speak to representatives (22%). Online site users most commonly went online to check balances (79%), pay bills (47%) or transfer money within the same organization (41%).
The study underscored the mobile technology’s influence in people’s lives. On average consumers reported having 24 apps installed on their phones, with 15% having 40 or more. Two out of three consumers use five or more apps daily.
While this preference for apps opens up new possibilities for credit unions and banks, it also provides opportunities for nonfinancial institutions to cater to consumers. With millennials, ages 18 to 35, and Gen Xers, ages 36 to 50, expressing more comfort than other generations using nonfinancial organizations for financial services, financial institutions will need to prioritize efforts to build and preserve loyalty among these segments.
The channels preferred also appear tied to the consumer’s stage of life. Millennials reported visiting a branch 4.6 times in the last month, higher than any other generation. Late millennials more likely than any other generation visited to apply for a loan (17%) or receive a loan (18%) in the last year, which may factor into this higher frequency of visits.
Despite their affinity for mobile apps, consumers have yet to fully adopt mobile wallets. Only 16% have used a mobile wallet, 20% for men and 12% for women. Millennials top the list for mobile wallet usage, with 36% of early millennials, ages 18 to 24, using mobile wallets and one-third of late millennials doing so.
“Consumers are making use of all financial channels,” Huntley Bakich, senior vice president, digital banking, Fiserv said. “Deciding which channel to use is often dependent on their personal needs at a particular moment in time. As life stages change, and require different levels of engagement, they are using all the tools available to them.”
