Trust and a fear of online transactions keeping bank branches alive
American bank branches aren’t going anywhere, according to the latest research of over 2,000 US consumers from Glory Global Solutions, the global expert in cash management.
Despite the rise of online and mobile banking alternatives, almost two-thirds (61%) of Americans surveyed still visit their bank branch at least once a month, while three-quarters (73%) believe that bank branches will still be needed in 10 years’ time.
Consumers say face-to-face contact is what they value most when visiting a branch (28%), but the research suggests our trips to the bank are also driven by trust and a fear of online transaction security. More than half of Americans (56%) think a face-to-face transaction is safer for their account information than online banking, with a third (33%) considering it ‘significantly’ safer.
That’s not to say that banks can rest on their laurels. Indeed, consumers are demanding an evolution in the relationship with their bank branch, with convenience featuring heavily in consumers’ wants and needs. Nearly half (46%) of all Americans would like to see longer opening hours from their bank branch in the next three years, more than a third (35%) would want shorter lines introduced in the future, while almost a third (30%) would like to have a more personalized service.
Nevertheless, the research indicates that branches have a great opportunity to remain relevant in today’s market alongside online and mobile technologies, by tapping into customers’ need for human contact and providing the services that people are uncomfortable sourcing online. Almost three-quarters of Americans (70%) would choose to carry out at least one of a range of large-scale or complicated services (e.g. applying for a loan or mortgage, opening or closing an account, or asking for advice) in branch*, even if there are alternative telephone or online methods available. This provides a significant high-margin market for bank branches to exploit for years to come.
“The fact is that people are emotionally tied to branches – they trust them,” said Joe Gnorski, Vice President of Marketing and Sales Operations at Glory Global Solutions. “Even when attractive alternatives exist – like telephone or mobile banking – many customers feel comforted and reassured by an in-person interaction, so banks need to be thoughtful about scaling back their branch network too far, too quickly.
“Glory’s research highlights a clear role for branches going forward, but this requires transforming them into more attractive and flexible spaces to do business – locations that offer higher-margin services with a genuine ‘human touch’. Key to this is getting financial experts out from behind the teller window and onto the bank floor to interact more closely with customers and offer the complex services they demand – on their terms. The cash automation technology is available to support this shift in strategy away from time intensive teller services, and if done well, significant benefits can be reaped both by the banks and their customers.”
Notes to editors
All figures, unless otherwise stated, are from YouGov research undertaken between August 5 and August 7, 2015. Total sample size was 2,285 adults. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).
*Even if the services were available via online or telephone banking…
41% would apply for a new bank account in branch
40% would close an account in branch
39% would apply for a large loan ($10k or more) in branch
36% would apply for a small loan (less than $10k) in branch
36% would apply for a mortgage in branch
36% would ask for financial advice in branch
Net figure – at least one of the above = 70%
About Glory Global Solutions
Glory Global Solutions is a global expert in cash management and business optimization, delivering innovative technology and service solutions that improve security and productivity. Our customers span the financial, retail, amusement and gaming industries.
Headquartered in Basingstoke, U.K., and with its U.S. head office in Lisle, IL, Glory Global Solutions employs over 2,500 professionals worldwide and has a distribution network reaching over 100 countries. It is supported by the technical expertise of parent company GLORY. With nearly 100 years history, headquartered in Japan, GLORY is a pioneer in the development and manufacture of money handling, cash management, vending and automatic service equipment.
For more information please visit www.gloryglobalsolutions.com.
Editorial Contacts:
Mike Harris / Jessica Morris
Fishburn™ for Glory
T: +1 212 459 5738 / +1 212 459 6232
M: +1 917 826 4204 / +1 646 725 4024
Glory@ThisIsFishburn.com
