While digital banking remains the predominant channel regardless of generation, branches remain popular among consumers. In fact, as you consider your high-tech, high-touch strategies, know that consumers are willing to use technology within the branch. 

Figure 1: Percentage of banking activity conducted by channel 

Digital banking is the predominant channel regardless of generation

Source: “High-Tech” and “High-Touch,” Raddon Research Insights, 2024

Branches Remain an Important Part of Delivery

Twenty-two percent of consumers in Raddon Research Insights’ High Touch Study in 2024 said they have visited a branch in the past week. And one in five consumers indicated they visited a branch in person at least once a month. But we cannot assume that these visits were only from the older generational segment. Eighteen percent of Zoomers reported being in branch in the past week and 23% within the past two weeks. 

Figure 2: Most recent branch visits in person, by generational segment

Almost one in four Gen Z consumers visited a branch in person within the last two weeks

Source: “High-Touch,” Raddon Research Insights, 2024

People Skills Matter!

Ninety percent of consumers feel they had a great experience when visiting a branch in person. But consumers in this study do not see a difference overall in service between types of financial institutions. So, while service matters, it may no longer be a factor of differentiation but instead a requirement for continuing interactions. 

Figure 3: Perception of experience in a branch, by Primary Financial Institution segment

All credit union consumers have rated the employees’ customer service as okay or excellent

Source: “High-Touch,” Raddon Research Insights, 2024

More than half of consumers have not seen a major change in their experiences over the past five years. But 38% say experiences either somewhat or significantly improved during that same period.

For consumers stating improvements, several reasons for improvement were identified

·         Quicker service

·         Better technology in the branch

·         Friendliness

·         Improved knowledge of employees

Of those surveyed, customers of major banks said they saw the most improvement. Service has improved significantly in larger banks over the past several years.

Figure 4: Percentage of shifts in customer service, by PFI segment

Over 40 percent of major bank consumers have noticed a positive shift in customer service

Source: “High-Touch,” Raddon Research Insights, 2024

Overall, whether experience has improved or worsened, consumers want and need fast and efficient service. Fifty-eight percent of consumers who saw an improvement cited quicker service. Similarly, of those citing worsened service, 49% indicated service was slower. How efficient are your teams at delivering services while keeping an eye out for opportunities to deepen relationships?

How does your financial institution stack up? First are you measuring the experience? Has it improved or not?

A Blended Approach Is Best

Many financial institutions are considering adding or expanding technology within branches to improve service speed and efficiency and to control operational expenses. 

Figure 5: Technology increased in the branch

Although older generations don’t always use the upgraded technology, they still want the option to do so

Source: “High-Touch,” Raddon Research Insights, 2024

As we would expect, the younger generation are more likely to say they like and use technology when visiting the branch. Traditionalists are more likely to say they avoid technology at all costs. Although older generations don’t always use the upgraded technology, they still want the option to do so. This provides an opportunity to support the use of technology within branches through a hands-on approach, with branch staff almost becoming concierges for them. Help customers engage with in-branch, self-service transactions, allowing more time for the robust sales and service discussions.

Figure 6: More technology in bank or credit union branches enhances the experience

Millennials feel very strongly that technology in the branch enhances their experience

Source: “High-Touch,” Raddon Research Insights, 2024

If you are considering adding technology in the branch, Gen Z, Millennials and even Gen Xers are more likely to say it will enhance the experience. The older segments are likely to agree as well, just not as strongly.

Consumers May Be Waiting for More Products and Services

In the most recent Raddon Roundtables, attendees discussed a refocus in culture on soft skills and relationship building through sales. They indicated that COVID-19 may have diverted attention away from a focus on sales and service. In addition, turnover and retirements have resulted in a larger number of new staff who need to carry the culture forward.  

Figure 7: Percentage of consumers offered products or services at their FI, by generational segment

Consumers indicate branch staff does not often explore additional product and service needs

Source: “High-Touch,” Raddon Research Insights, 2024

Are financial institutions missing the opportunity to grow organically through deeper relationships with existing accountholders?

Thirteen percent of consumers indicated they added a product or service when asked. That includes 28% of Zoomers and 25% of Millennials. Unfortunately, 21% of Zoomers indicate they have not been asked but wanted additional services. In sales, you get a lot of “no’s” before you close the deal. But are we identifying the accountholder’s needs, evaluating the structure of products, and actually asking for the business? 

Strategic Key Takeaways

People skills matter: In fact, the younger generations are still visiting the branch but like the option to use technology or self-service even if their older counterparts are slower to adopt this type of technology. To be more effective in transition to in-branch technology, use your staff as concierge to support that movement whenever possible.

A blended approach is best: When using technology in the branch, many consumers feel that it enhances their experience. But for more advanced needs, consumers indicate a desire to have an in-person, human interaction. Be sure to create the right balance between interactions.

Consumers may be waiting for new products: Consider refreshing your product knowledge and soft skill training, alongside your sales training, to effectively deliver top-shelf service and deepen relationships with consumers in your high-touch channels.