
Sunny news for the “dying” bank branch — what I learned user testing in Philadelphia…
After spending some time last month in Philly conducting user studies (and it was, as always, sunny), I wasn’t snowballed or “cheesesteaked” or forced to talk EAGLES. I did, however, discover some fascinating consumer insights in between taking selfies with the Rocky statue.
We interviewed a huge swath of consumers — from Boomers to Generation Z (including my fellow forgotten Gen X compadres) from a variety of occupations, income levels, marital statuses and gender. Despite the diversity of the consumer audience, one item during our interviews remained consistent: The way they find a new bank.
Sure, there was a variety of approaches consumers took — everyone talked about using search engines to find banks, social influenced recommendations — some even mentioned advertisements.
But one thing was mentioned by every consumer we interviewed: Location, location, location (okay, that’s three things, but you get the idea).
Imagine my shock. They all had smartphones in hand and we were doing a user study for a digital bank without branches. Still, one after one, they all said the branch was a driving factor for how they select a new bank.
Um, follow-up question, please: How many times have you been in the location/branch in the past 30 days?
I thought for sure the answer would be none in most cases, but, again, they were full of surprises — all but one consumer said they had visited more than twice in the past 30 days.
People still go to the branch? But I’ve read seemingly hundreds of think-pieces about how the branch is dying.
Time for the second follow-up question: Do you use your bank’s mobile app or online banking application?
All but one said yes — most said they like them and find them very easy to use.
Follow-up number three: If you have access in these ways, what takes you to the branch? What are you doing there? What drives all these people to the channel (yes, I said channel) that everyone says is dying?
· Cash — yes, cash, another supposedly outdated dimension of banking. Consumers want $100 for graduation season or cash for vacation or quarters for laundry or any number of day-to-day needs.
· Limits on the native application for check deposits. Consumers sometimes just can’t deposit large amounts on their phones, and have to go into the branch.
· A face. They want help. One millennial said to me, I don’t understand all this banking stuff. I like talking to someone or I’ll call my dad. When applying for a mortgage or investing or even when reporting a fraudulent charge, it helps to have a friendly face there to listen. You know, in case Dad is busy.
· On the other hand, sometimes a face to yell at is just as important. Consumers like knowing that there is a throat to choke or a place to go, if they need it.
When the study was over, I wondered whether we recruited properly. Is this normal? I thought. How can this data be so different from all the articles? Is Philly just weird or out of touch?
No, I think to quote one of my favorite Fintech Mafia Snarksters, Mr. Shevlin, There is data to support whatever argument you want to make… and applications to help you focus on both for true digital transformation.
These surprising results aren’t wrong just because they go against a commonly accepted — but they do pose a few different opportunities for banks.
First, it may indicate that banks’ apps just aren’t grabbing their customers the way they should.
At one point in the study, when I asked consumers what type of apps they love, they all mentioned the usual social suspects. Older people said Facebook, younger said SnapChat and Instagram, and a variety mentioned Twitter, but when I asked specially about financial apps, they all said PayPal or Venmo, some said Cash, and exactly zero mentioned their bank.
It’s clear that something is missing from the majority of bank app experiences. Consumers — especially millennials — expect a next-level, seamless experience akin to what SnapChat or even just Venmo are offering, but banks are instead focused on developing clunky online apps.
In terms of banking apps, customers expect a Tesla, but maybe they feel that all bankers are giving them is a Ford Pinto?
But the disconnect between consumers and banking apps doesn’t completely explain the interest we found in bank branches.
Based on these consumer insights, it’s possible even the most sophisticated app can’t fully replace the comforting familiarity of a human touch — as long as physical branches are providing the right experience, that is.
Consumers don’t visit bank branches because they want to feel frustrated by a branch employee struggling to find the customer’s information in an outdated teller portal. As with their preferences for apps, consumers are telling banks they want an experience that fits seamlessly with their needs — whether that’s visiting a branch over their lunch break to get cash or quickly depositing a check using their smartphone.
Banks need a customer-first approach to experience ensuring that each of these distinctive experiences, from smartphone to browser application to the not-so-dead branch.
Zenmonics’ channelUNITED was created with the idea that each of those channels — and each customer — is unique, and requires a uniquely engaging experience. We didn’t want the branch — despite its exaggerated death spiral — to be an afterthought to a mobile application. As we confirmed in Philly, the branch is top of mind for consumers, so we keep it top of mind, too.
Click here to learn more about transforming your consumer experience from across channels.
