New Report: Half of Customer Banking is Done Online

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More than 85 percent of customers ages 18-49 handle at least half of their banking needs remotely, followed by 76 percent of people 50 and older, says a new report from Ann Arbor-based CFI Group.

The Bank Satisfaction Barometerfinds that only 37 percent of customers are visiting a branch more than once a month, and 31 percent are using the branch less often than three years ago.

However, the banking industry shouldn’t forgo their brick-and-motor locations just yet — survey takers cited branch locations as the No. 1 reason why they chose their bank in the first place. Nearly 70 percent of respondents said their closest bank branch was no farther than 3 miles from their home.

“Creating a balance of investment among branches, online, mobile, and ATMs is crucial to satisfying customers today,” says Terry Redding, spokesman for CFI Group. “Having one of those options is simply not enough. Financial institutions that do not show their customers they are able to assist them with their needs virtually or in-branch will result in customers being inclined to taking their banking needs elsewhere.”

Overall, customer satisfaction with the banking industry is up one point from 79 to 80 since 2013. The small increase shows that banks’ relationships with customers are improving, boosted by two vital aspects — online and mobile banking and effective communication, Redding says.

To read the full report — which found that the top three remote banking activities include checking account balances, paying bills, and transferring money — click here.

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