Daily Management Review

For Opening New Accounts, More Americans Would Visit A Branch Than Use Mobile Apps


02/22/2018




For Opening New Accounts, More Americans Would Visit A Branch Than Use Mobile Apps
A new survey conducted on U.S. citizens with a bank account has found that about 60 per cent of all Americans prefer to go to a bank branch to open an account instead of using online apps through their mobiles, tablets of desktop computers despite the enhancement of quality of mobile banking apps.
 
There us a feeling among half of the American banking customers that those banks that are online- only appear to be “less legitimate” compared to those which have physical presence. The survey-based study was conducted by consulting firm Novantas.
 
The researchers have found that banking customers want to be able to see a human being solving their problems or issues that could arise and that is the reason that they would rather visit a physical bank branch instead of depending on online services for some of the banking related functions.
 
“Folks are still hanging onto this comfort of feeling like there is a branch nearby if, and when, they need it,” said Matthew Sharp of Novantas. It is a different issue that people these days go less often to branches.
 
And therefore, in the respect of attracting new customers, those bank that can still afford to have branches and physical offices appear to have a distinct advantage over those banks that are only online startups.
 
The results also justify the plans of banks like JPMorgan Chase & Co and Bank of America Corp when they say that more branches would be built by them as and when they enter more and new cities. While Pittsburg would be the next city of expansion for Bank of America this year, as many as 400 new branch offices would be added by JPMorgan in the next five years in cities like Boston and Washington, D.C.
 
The study surveyed e-mailed replies of 4,352 people and was done in September last year.
 
Sharp said that if traditional banks are able to better demonstrate that they would be able to respond to customer problems online, more banking customers would be open to using online primary accounting opening services.
 
But Andrew Hovet, a director at Novantas said that even a home address is not changed by some banks of their customers without giving a personal visit.
 
Hovet said that designing of easy-to-use online accounts at the beginning is an advantage for those banks that are relatively new to in terms of accepting bank consumer deposits like the Ally Financial Inc and Goldman Sachs Group Inc.
 
Hovet said that mostly those customers who want the highest rate of interest for their secondary savings accounts are the ones that have been primarily signed up by online-only banks and not signing those consumers who want to open up primary bank accounts to keep their finances safe.
 
However, despite the trend that has emerged from the study, lesser number of physical branches need to be set up by JPMorgan and Bank of America compared to what they have done in the past because of the trend of using their phones for doing everyday transactions among a greater number of American – specifically younger adults.
 
(Source:www.reuters.com)






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