NORTH CANTON, Ohio - Diebold Inc. is taking a look at the next-generation retail-banking customer and has put together a research report, "Identifying the Next-Generation Retail Banking Customer: New demands, interactions, and expectations on the near-term horizon," based on research conducted by Perceptive Services.
According to a news release, the research is designed to provide insight for financial institutions undergoing branch transformation and defines who the industry considers a "next-generation" customer. The analysis considers baby boomers (age 43 and older), Generation X (ages 26-42) and Generation Y (ages 18-25).
"We want to share this insight and information with our customers to assist them in crafting their branch transformation strategy for improved success rates," said Ken Justice, Diebold's vice president of global self- service marketing and management. "Ongoing research and exploration into consumer behavior within the retail banking channel is critical to our development of products and services. By understanding who the next-generation consumers are, we can design equipment to meet their needs."
The study shows that ATM usage continues to find strong support across generations. In fact, aside from withdrawing cash, all generations unilaterally rate viewing account balances, making deposits and transferring funds between accounts as their three most-preferred ATM services. All segments also tend to prefer ATM deposits versus using the online channel from their homes.
The majority of members from all generations surveyed also support the potential to use the ATM to scan checks directly over making traditional, envelope-based deposits.
Research insights were drawn from a variety of sources, including primary data from a cross-section of retail-bank customers' tendencies and preferences; secondary research from existing literature; and interviews with banking strategists in the retail sector.
"Part of a consistent pattern echoed throughout the study (reveals that) the younger generations were generally more accepting of a variety of uses of the
ATM," said survey author Tom Thornton. "The study indicated that the youngest segments of Gen Y were more open to the possibility of using ATMs to conduct wire transfers as a vehicle for topping off prepaid gift cards."
The study also shows that the branch ATM offers a strong alternative for in-lobby PC terminals or as an interaction tool with tellers via closed-circuit monitors, and is generally preferred by customers of all generations.
"Nowhere was the opposition to wait-time more acute than in the younger Gen Y segment," Thornton said. "While older, baby boomers are willing to wait somewhat longer to gain a personal interaction with a teller, Gen Y customers are more than happy to forego the line in favor of the ATM."
Gen Y members, who grew up with the PC and Internet and are oriented more toward parallel-information processing and multitasking can appreciate a highly flexible and easy-to-use ATM interface.
