For decades retail banks have been waging war against one another for the best products or the most competitive interest rates – yet, in today’s digitally driven world, it seems that the overarching customer experience has taken precedence over the offering itself.
In the Qudini 2020 US Banking White Paper, we surveyed over 2,000 consumers from all age brackets throughout the US to get their thoughts on the retail banking market and unveiled some truly interesting motives behind why consumers choose their banking provider.
Here’s what we discovered:
1) In-branch experiences matter most when choosing a retail bank
Almost a third (32%) of US consumers said the primary reason they joined their current bank was its “in-branch experience and service”. This was particularly true with Baby Boomers (those aged between 54 and 72), with 41% stating that this was the case.
Interestingly, products such as mortgages and loans were only selected by 19% of respondents, while interest rates were only selected by 17% of respondents.
2) Family members have a say over this bank or that
Overall, 27% said they chose their current banking provider because it was used by family members.
This was even more influential than strong brand/brand affinity, which swayed the opinions of 23% of consumers.
Perhaps unsurprisingly, almost half (46%) of Gen Zers (those aged between 16 and 23) were influenced to join banks because they were used by their family members. (Find out more about what Gen Zers want from retail banks here.)
3) Good service is crucial to customer retention
We may live in an increasingly digital age, yet the survey revealed that consumers still want high-quality service, experiences and support when entering a branch, with younger consumers expressing a particular eagerness for help.
Survey respondents were asked how important good service is when working with their bank, and 98% said it is “important” or “extremely important”; and when asked specifically about the importance of good in-branch experiences, 92% said it is “important” or “extremely important”.
Consumers also expressed a strong demand for time efficient service offerings – the only thing that has changed in recent years is how it is delivered. According to our survey, the most important technology consumers want to see in banks is the technology to speed-fast transactions, followed closely by the ability to reduce wait times to lines and schedule appointments with bankers.
Retail banking is in a revolution and branches are transforming into brand interaction hubs that improve profitability and brand relevance. Qudini helps retail banks meet the demands of modern consumers with our in-branch Retail Choreography software solutions – Appointment Scheduling, Queue Management, Task Management and Event Bookings.
Read our Qudini 2020 US Retail Banking White Paper for more insights into consumer behaviors, preferences and demands for the retail banking sector.