Consumers Jilting Branches for Online Banking: Study
Half of us want to hang up on branch banking. That is the headline news out of a new study of consumers and their banking preferences by Princeton, N.J.-based Rosetta, part of the Publicis Groupe of marketing agencies.
Three numbers from the research slam the point home; “52% of respondents said their bank's website is their primary method of banking, while only 32% said the branch was their primary method of banking. 48% of respondents said they would do all banking online if they could,” said Rosetta in a press statement.
"Banks are missing an opportunity to better engage with consumers online and create a consistent brand experience across all channels," said Rosetta Managing Partner NedElton in a statement. "Retail bank marketers need to identify ways to apply the same level of personal touch and feel currently offered to retail branch customers through the online channel.”
The Rosetta survey – which involved more than 1,100 consumers in a range of ages and with a diversity of incomes – discovered that consumers most use online banking for these tasks:
- balance inquiries and account activity
- bill payment
- transfers between accounts
- obtaining financial information
Elton predicted that the rise of mobile banking tools – including remote deposit capture – will further erode consumer desire to visit branches.
In an interview with Credit Union Times, Elton said, “I was surprised by the number of people who say they would do all their banking online if they could. It shows the interest in pulling away from the retail branch.”
“The ongoing trend is pushing people away from the traditional retail environment,” he added. “I don’t think retail goes away – but I think it needs to be digitized.”