News

Slim majority of consumers OK with automated bank branches

March 24, 2017

Converting traditional branches into automated or self-service facilities will have an impact on customer relationships and branch traffic, according to Optimizing Self-Service Banking, a new report by Phoenix Synergistics.

An online poll of more than 1,000 consumers 18 or older found that nearly 3 in 10 (29 percent) would use an automated branch for routine banking, and would use another branch for more complex activities. And more than one-quarter (27 percent) of participants said they would continue to use that branch just as they always had.

Nearly one-fifth (18 percent) of those surveyed said they would shift to another branch for all of their banking and almost as many (17 percent) said they would switch financial institutions altogether.

Phoenix Synergistics also found that heavy branch visitors were more likely than others to say they would begin to use another branch, suggesting a potential decline in traffic at a fully automated branch.

"Heavy hitters such as Bank of America are beginning to test automated or self-service branches that feature ATMs and videoconferencing technology rather than relying heavily on staff," Phoenix Synergistics CEO William H. McCracken said in a press release.

"These new facilities help cut costs and encourage a shift to digital banking options such as PC and mobile. … [However] our findings show that while many customers would be receptive to automated or self-service branches, there are segments [that] are not ready for fully automated facilities.  These customers may jump ship in search of another provider with more traditional staffed branches."