Consumers increasingly expect financial services on-demand and on their terms. While a majority of consumers prefer online or mobile banking, and those channels are far more frequently accessed for day-to-day interactions, a surprisingly high number of consumers still visit the branch.
A new white paper from Fiserv details the results of “Expectations & Experiences: Channels and New Entrants.”
The survey underscored the influence of mobile technology in people’s lives. On average consumers reported having 24 apps installed on their phones, with nearly one in six (15 percent) having 40 or more. Two out of three consumers (66 percent) use five or more apps daily.
While this preference for apps opens up new possibilities for financial institutions, 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.
According to the survey, more than half (53 percent) of consumers prefer online or mobile banking for standard daily transactions. Forty-four percent said they preferred a traditional branch while two percent chose a fully automated branch with no personnel on site. More than 80 percent of consumers logged on to their primary financial organization’s banking site in the last month, averaging just over 11 visits each. A surprisingly high 61 percent said they visited their primary financial organization’s branch in the last month.
Among those who have visited a branch in the last month, the common reasons were to deposit checks (68 percent), withdraw cash (51 percent) or speak to representatives (22 percent), while online site users most commonly went online to check balances (79 percent), pay bills (47 percent) or transfer money within the same organization (41 percent).
The channels through which transactions were conducted also appear to show a relationship to the consumer’s stage of life. This is highlighted by the fact that late millennials, ages 25 to 35, reported visiting a branch 4.6 times in the last month – higher than any other generation and much higher than the overall average of 2.9 times. Late millennials were also more likely than any other generation to have applied for a loan (17 percent) or received a loan (18 percent) 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 percent of people have used a mobile wallet – 20 percent for men and 12 percent for women. Millennials top the list for mobile wallet usage, with 36 percent of early millennials, ages 18 to 24, using mobile wallets and one-third of late millennials (33 percent) doing so.
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