Banking 2020: Branch based model threatened by digital channels

by The Financial Brand

In the next few years, consumers say they plan to use branches as much if not more than they do today. But data suggests the tide is shifting to digital channels.

Branches remain the preeminent delivery channel for banks and credit unions… for the time being, that is. According to research from Accenture, consumers still prefer branches to websites, but the margin is narrowing — 41% to 35%.

In Accenture’s survey of 2,000 U.S. consumers, nearly four out of five consumers (78%) said they see themselves still using branches as often — if not more often — in five years’ time, in large part because 66% of them still prefer to talk to a person vs. purchasing a banking product online.

27% of survey respondents said “more branches close to where they live or work” was a key reason to switch providers. About half (48%) said they would be inconvenienced by the closure of nearby branches to such an extent that it would induce them to switch.

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