From
The Financial Brand -
This study exposes the mounting tension between old and new delivery channels: traditional branches vs. digital self-service. Are consumers really ready to ditch bricks for clicks?
Consumers today still crave one-to-one attention from their banking providers, and have a strong preference for in-person assistance when making major financial decisions such as first-home mortgages. That’s according to a study from
TimeTrade.
In their
“State of Retail Banking 2016 – Consumer Survey,”
research findings reveal that all ages — but particularly younger
generations — say they value the option to visit an actual, physical
branch. Both Millennials and Gen Z express a more intense preference for
in-person discussions than other generational segments. When it comes
to important financial issues, they are among the most willing to visit a
bank or credit union branch for advice.
The TimeTrade survey, which encompassed over 2,000 participants,
found that nearly half of consumers look to visit a branch, and are more
keen to do so when they have bigger banking questions. 43% of
respondents report visiting their bank branch more than ten times a
year, with the average consumer saying they visited their bank branch an
average of roughly six times per year.
When visiting a branch, 78% said one of the reasons they came in person was that they required assistance from a specialist…
perhaps because other digital and self-service channels failed?
( Read More: Banks Frustrate Consumers Who Want a More Personal Experience )
TimeTrade says the data indicates that in-person meetings are still a
priority, especially when high-value services are involved. However,
just because consumers are willing to drive to a branch doesn’t mean
they will be patient when they get there. 64% of consumers say they are
willing to wait less than ten minutes to be helped.
One way that banks can provide people with a simpler and more
convenient service is by offering them the ability to pre-book
appointments. 46% of respondents say they would like their bank to offer
this option, and 65% overall are receptive to the idea.
Despite industry buzz, consumers seem — for the most part —
indifferent about café-style branches, with the majority of respondents
in the TimeTrade study saying it has no influence on their decision of
where they bank. They couldn’t care less about coffee and wifi, so they
say.
Consumers are also reluctant to embrace a fully-automated branch
model. When banking consumers were asked how they felt about branches
with no tellers and automated transactions, more than half said they
would prefer the option of being able to talk to a teller. Still… there
are quite a few consumers who seem more than willing to consider going
branchless.
Respondents in the study also expressed apprehension about automation
occurring more generally in the banking industry, overwhelmingly saying
that — when there’s a need — they would prefer face-to-face assistance
from actual people rather than from options like online/remote tellers.
Gary Ambrosino, CEO of TimeTrade, says today’s consumers have the
same “on-demand” digital expectations when banking as they do when
interacting with retail, travel and other brands. “At the same time, the
data tell us that people still want a face-to-face experience when
making big financial commitments — not strictly automated online
services — and they expect these services with minimal wait-time,”
explains Ambrosino.
“In banking, personalization equals trust,” says Ambrosino. “Smart
banks are positioning themselves to build trust — and get more business —
by personalizing banking experiences.”
