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Consumers still prefer mix of banking channels

Although the Internet remains consumers' top channel for banking, others — including ATMs and the branch — are regaining ground.

December 11, 2014 by Jim Ghiglieri — Senior Vice President, Corporate Communications, SHAZAM

Although the Internet remains consumers' top method for conducting their banking business, other banking channels are gaining ground.

According to a recent survey by the American Bankers Association, 31 percent of consumers turn to the Internet most often to manage their financial accounts.

This represents a slight decline from 39 percent in 2013. However, visiting a branch, which was named as the second most popular way to bank during last year’s survey, rose to 21 percent. That's up from 18 percent in 2013.

ATM use also grew in popularity, with 14 percent of respondents citing it as their preferred banking method, up from 11 percent in 2013. More consumers also embraced mobile banking, which was preferred by 10 percent of consumers compared to 8 percent the previous year.

Nessa Feddis, ABA senior vice president and deputy chief counsel for consumer protection and payments, noted that this growth reflects financial institutions' recent investment in technological upgrades to enhance efficiency and customer service in these areas.

"Advances in technology have enabled FIs to expand customer choices and make it easier for consumers to manage their accounts anywhere, any time," Feddis said in a press release. "Consumers can deposit their checks through a teller or interactive kiosk at a local branch, at an ATM or through an app on their mobile devices. Most people use a mix of these methods."

Feddis pointed out that there is a branch resurgence in some areas, with many FIs transforming their branches to become more efficient and customer friendly.

Although this is the sixth year in a row that consumers have named online banking as their most preferred banking channel, the fact that banking by branch gained ground this year is noteworthy.

It's clear even in today's increasingly tech-laden world, consumers still prefer to conduct certain banking activities face to face. That's why it's as important as ever for community FIs to continue to offer a mix of the latest and greatest in online, mobile, and convenience banking options while maintaining a strong person-to-person relationship with customers.