News

Poll shows Americans favor bank branches

July 29, 2003

CHICAGO -- "Banking customers still love bricks and mortar," said Frank Newport, editor-in-chief of the Gallup Tuesday Briefing, a weekly online newsletter. "The human touch is still important."

A Knight Ridder/Tribune Business News report, cites a recent Gallup survey of more than 1,000 adults nationwide that shows 60 percent of bank customers walk into a bank branch two or more times per month, while only 48 percent use the bank ATM that often.

"It may be surprising to bank officials, because they thought people would acclimate quickly to ATM and Internet banking," Newport said. "But people still like to go into bank branches."

According to a report in the Munster (Ind.) Times, bankers in Northwest Indiana question the low figure for ATM use. But all agree the bank branch is back in favor as a platform for marketing everything from college savings plans to insurance.

"It's maybe the bankers realizing the importance of customer service and personal contact," said Cal Bellamy, chairman and chief executive of Bank Calumet. "Those were the original touchstones of banking. Now we understand we have to be both efficient and customer oriented."

Bank Calumet recently completed a $400,000 renovation of its main headquarters branch in downtown Hammond and is spending $1 million into expanding its Highland branch. New conference rooms for customer consultations are being added at each location.

Other area banks are in the midst of similar expansions. Centier Bank opened new branches in Miller, in Gary, and inside a Sterk's supermarket in East Chicago in the past year.

The Whiting-headquartered bank plans to build a fifth branch in Valparaiso next year. It also has made "selective choices" in placing five branches in local supermarkets, according to Michael Schrage, Centier Bank president and chief executive.

All of the in-supermarket branches have Sunday hours. Tellers go out into the supermarket aisles to meet customers and talk banking, according to the Times.

"It gives us the chance to expose our product just like any product on the supermarket shelves," Schrage said.

Chicago-based Bank One is planning to remodel many of its branches and upgrade its 127 ATMs in Northwest Indiana starting next year, according to John Diederich, Northwest Indiana Bank One president, spending a total of between $1.5 million to $2 million. (See related story Bank One makes major ATM investment in Chicago)

Bank One branches will feature "concierge service," with a greeter at the branch door who can direct customers to the appropriate service.

Rather than eliminating tellers, banks are training them to listen carefully to customers needs and steer them to bank personnel who can help them.

The Gallup survey also showed many people still like to talk to a human on the phone. About one-third of respondents reported they call their bank's 800 number at least once a month and talk to a live representative, in order to make an inquiry or conduct a transaction.

Earlier this year, Bank One dropped its much-maligned $3 teller fee.

At the time of the announcement, only Bank One customers with the Basic One checking account were charged the fee, and then only if they were using the teller for something they could do by ATM or phone.

But the fee had been the butt of jokes by late-night comedians when it was introduced seven years ago, and Bank One officials seemed relieved to announce its demise. (See related story Bank One eliminates teller fee, acknowledges importance of the branch)