Branch vs. Digital Banking in Illinois By Steve Bruyn, Foresight Research
O
verheard from the fly on the wall, “We can save a lot of money by closing branches so let’s make sure that we run this bank as efficiently as we can.” Then the branch folks added, “No, no, our business still relies on the personal touch with our customers.” Financial folks respond, “All the customers want is digital banking and the fintech’s are coming to meet that need – big time.” Branches respond, “Our advantage is our branches, and you want to give that up?” So, the argument continues with no facts from the customer – the ultimate judge. So, who is right? Foresight Research surveyed 700 banking consumers to measure the banking habits of consumers in Illinois.
Users of Branch and Digital Banking in Illinois
Online banking, followed closely by mobile apps, is the predominant mode of banking access across Illinois. While branch banking is used at least occasionally by 4 out of 5 customers or members, only 16% are frequent branch users. Gen X and Millennial customers/members most often access banking services via mobile apps or online banking, and nearly half are frequent users of peer- to- peer payment apps. Baby Boomer customers/members are most likely to use online banking services with mobile apps a distant second place. High income customers and members are more likely to use digital (both online and mobile), and over half are frequent users of peer- to- peer payment apps. So, overall, score one for the finance types who point to the diminished use of branches.
Respondents were asked about switching their financial institution if a branch was no longer conveniently located.
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• November-December 2021
% reported that they would switch to another financial institution.
