Branching out: consumer retail banking preferences
As financial institutions continue to close branches around the country, one can’t help but wonder if in-person banking is becoming a thing of the past. Technology has impacted countless business-to-consumer relationships, but has it meaningfully trickled down into the realm of personal finance? Vantiv and Socratic Technologies asked 500 consumers how they interact with their retail banks, from their willingness to use advanced banking features like remote deposit capture to their overall trust in financial institutions. The results show that in-person visits and website experiences are the primary drivers of successful personal banking interactions.
Visiting a branch and using a bank’s website are the most popular interaction points for consumers.
37% of respondents prefer to visit a retail branch and 36% prefer to use a bank’s website. The next most popular way to interact is via phone (10%).
Online chat, email, and mobile apps have some catching up to do.
These are the least popular interaction points at 4% for online chat, 4% for email, and 8% for mobile apps.
Banking websites appeal to all generations.
Retirees (40%), Boomers (38%), Gen Xers (34%), and Millennials (34%) all like interacting with their banks via websites. Retirees and Boomers most prefer visiting a branch, while Gen Xers and Millennials most prefer using a bank’s website.
Remote deposit capture and mobile banking apps haven’t caught on…
69% of respondents have never used remote deposit capture (smartphone check deposits) and more than half (52%) do not use their bank’s mobile app.
…and information security might explain why.
Why this discrepancy between websites and mobile apps? One explanation might be that 73% of respondents believe their account information is secure on a bank’s website. However, only 44% believe it’s secure when using a mobile app.
Post-crisis, Gen Xers are most skeptical of banks.
37% of Gen Xers say they no longer trust banks due to the banking crisis. This is higher than Boomers (27%), Millennials (26%), and Retirees (24%).
Millennials are least likely to be brand loyal.
They are the group most likely to switch banks for convenience at 42%. Retirees are the least likely at 20%.
Retirees aren’t looking to banks for investment advice.
50% of Millennials and Gen Xers would be comfortable seeking investment advice from their banks, while 46% of Boomers feel the same way. However, only 29% of Retirees would look to their banks for investment advice.
How do these consumer preferences shape the focus of financial institutions this year? See more with Vantiv POV on the trends shaping this year for financial institutions.
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