NORCROSS, Ga.—Branches remain essential for handling banking matters for a significant number of consumers, according to a new report.
According to the study from Phoenix Synergistics, “The New Digital Bank Branch,” overall, half of consumers report bank branches are essential to how they handle their banking.
“Baby Boomers are most likely to hold this viewpoint, however, an impressive number of Millennials – more than four in ten – find branches essential for their banking. More than one-third indicate branches are important, but not essential. Only small numbers see branches as unimportant, Phoenix Synergistics stated.
“Across the country, financial institutions have been modifying their branch strategies and networks – some reducing the number of branches, some reducing or replacing branch staff with self-service devices, and some building branches,” said Genie M. Driskill, COO of Phoenix Synergistics, stated. “Findings from our survey show that in the current more digitized environment the branch still has a key role to play in making contact with customers of all ages. Even the ‘digital natives’ – the Millennials – find branches important in how they handle their banking. Moving forward, FIs need to strike a balance between personal contact and self-service.”
The report is based on 1,500 Internet interviews with consumers age 18 or older. This study examines consumer behavior related to branches, as well as their reaction to innovative branch designs, self-service automation, and staff contact.