By: Joe Gillen
There are a handful of analysts, bank consultants and industry professionals who argue that branchless banking will become popular in the near future as consumers come to enjoy the convenience being able to conduct key transactions via online and mobile portals. While it's true that mobile platforms now allow consumers to complete a number of tasks without having to set foot in a bank or visit an ATM, some are not convinced that so-called "do it yourself" banking will catch on completely and render banks obsolete.
A recent Fox Business article highlighted the trends that were taking shape in 2013, and it's no surprise that mobile technology and do-it-yourself banking were high on the list. Mobile capabilities now allow consumers to deposit checks remotely with their smartphones, and a small handful of banks are in the developmental stages of establishing PicturePay features. In addition, more banks are relying on social media for customer service purposes, which is also driving traffic away from bank branches and phone lines. Finally, the establishment of comprehensive banking kiosks that many larger institutions are rolling out enables customers to speak with a remote customer service representative if they need assistance with their transactions.
Will do-it-yourself banking take over one day?
While all signs point to a more independent customer demographic as a result of this new technology, not all are convinced that do-it-yourself banking is feasible or even desired. Many customers turn to banks and credit unions for financial education, guidance, loan products and other services that cannot be provided via online or mobile devices. More importantly, however, a wealth of customer satisfaction research reveals that developing personal relationships with financial institutions is important to customers.
A large majority of individuals who switched from large institutions to community banks and credit unions in the past year cited a desire for more personalized services, friendly and helpful assistance and a desire for a transparent relationship built on trust as their primary motivations for going to a new institution. While mobile and online portals remain crucial to customer retention and acquisition, they are still complementary to the personalized face-to-face relationships many people have with their bankers. In an age where more institutions are focusing heavily on the advanced technology they can provide to customers, studies show that it's still important for all types of service providers to continue forging one-on-one relationships with individuals to provide them with a well-rounded and positive experience.