13 Aug 2019
While 90% of banking customers use online or mobile services, bank branches still important for lending, says GlobalData
European banks have been investing in digitizing branches in recent years to offer customers a more modern and efficient banking experience. However, it is easy to see why some observers may feel that this money is going to waste, as *53% of customers say they rarely visit a branch and a respective *89% and *90% of customers confirm they use online and mobile banking, says GlobalData, a leading data and analytics company.
However, Globaldata also found bank branches remain important for customer acquisition, providing customers with personalized assistance through more complex financial transactions such as lending applications.
Oliver Wintle, Associate Retail Banking Analyst at GlobalData, says: “Banks should continue to focus on providing services that match their customers’ different usage occasions by improving the quality of their online and mobile banking applications, which for many customers is their main point of contact, as well as by clearly differentiating branch services to those offered online.’’
A sizable 42% of Europeans preferred visiting a bank branch for lending applications such as credit cards, loans and mortgages, which are typically the main driver of profit. Therefore, bank branches improve customers’ onboarding experiences.
Wintle added: “Banks aiming to improve their overall customer satisfaction should invest in improving their call center experience, particularly as only *62% of customers are satisfied with the services provided, making it the least favored customer-facing channel for many companies.”
Of the total respondents to the GlobalData 2019 Banking and Payments Survey, 74% were satisfied with the service provided at European bank branches.
Wintle concluded: “In this age of increasingly confusing financial management, much can also be said for the more personalized, human services that branches usually offer compared to mobile and online.”
‘*’ GlobalData’s 2019 Banking and Payments Survey