Home > What’s UP > blog > Digital banking overtakes branch use – W.UP Digital Banking Weekly


01. 29. 2018

Digital banking overtakes branch use – W.UP Digital Banking Weekly

Online banking has reached a milestone: new research shows that it is now used more than branches. But what are the most in-demand mobile banking features to customers when it comes to choosing a bank? Also, are millennial men really better customers than women?

Digital banking overtakes branch use

Digital banking channels gain the lead over branches

Online banking has overtaken visiting branches for the first time, leading three quarters of global banks to plan closures, according to new UBS research cited by The Telegraph. As many as 52% of all consumer transactions are now done online, making it the primary method of banking. This was 33% two years earlier, according to the UBS survey of 24,000 customers in 19 countries.

The proportion of transactions done in branches has fallen from 48% to 34% over the same period. UBS said the accelerating trend would lead to further rounds of closures. A separate survey by the bank of 86 global lenders found 73pc were likely to shutter branches, while 83pc are planning to reduce in-branch staff numbers.

Choosing a bank: the most popular mobile features

The mobile banking market is approaching saturation in the US, but it’s more important to customers than ever before, a recent study by BI Intelligence said. Banks are going to new lengths to attract and retain customers with mobile features.

BI Intelligence found that transfers are the most important category of features to consumers when choosing a bank. Interest in advanced mobile banking account access is also poised to jump. This includes features like biometrics and account aggregation. With Face ID giving customers a new way to log in to banking, interest in the group of features will likely rise.

Banks must move from transactions to engagement

The traditional business model in banking relies on one-way value creation – product development, distribution, and sales and marketing – all aimed at customer acquisition. Platform-based models, however, are two-way, researchers at PwC said.

As digital banking continues to evolve, strategies will need to consider this two-way continuous value creation and data collection. Banks need to transition from a point-in-time transactional data mindset to an all-encompassing engagement mindset. This will involve the use of AI, ML, and advanced analytics, all of which first rely on the right sets of data, the experts said.

Are millennial men better banking clients than women?

Banks should question the conventional wisdom about gender differences and understand the gender behavioral differences among their own customers, Cornerstone Advisors has suggested based on the findings of its new research.

The survey revealed that among younger millennials (those between 21 and 29 years old), two-thirds of men referred family or friends to their primary bank in the prior year, in contrast to a little more than half of the women. Compared to younger millennial women, twice as many men grew their relationship with their primary bank adding non-deposit products (52% vs. 26%).

Digital wake-up call