LOMBARD, Ill.—Another study shows that consumers still want to do business at the branch.
A new report from Raddon Financial Group shows that despite mobile’s advances, the branch remains a preferred sales channel for opening new accounts.
The report found most consumers still want face-to-face interaction when they purchase highly valued products, such as transaction accounts, savings accounts and investment products.
According to the study, 61% of all consumers that will open any type of deposit and investment plan to visit a financial institution’s branch office to open an account. The study also found that consumers who plan to open any type of deposit product, especially Millennials, are more likely to open an account via a face-to-face interaction than other consumers.
Account Trends
More than a third (38%) plan to open one or more accounts online using a computer. Fifty-eight percent of consumers who expect to open any type of investment account in the next 12 months – mostly existing investment product users – said they will likely use a computer to open an account. Half of consumer report they plan to open one or more investment accounts by visiting a branch, the report shows.
According to the study, 17% of all consumers expect to open a deposit account or investment product in the next 12 months. Fourteen percent expect to open a checking account, a certificate of deposit, a savings account, or an insured money market account or an individual retirement account. Five percent said they will likely purchase an individual stock, stock market mutual fund, a money market mutual fund or another type of mutual fund, or an additional type of investment.
Greater Deposit Demand Among Millennials
The study found Millennials have greater deposit and investment product demand than older generations. Gen X is more likely to open any type of deposit product, particularly a checking account, as savings account and/or an IRA.
“According to Raddon research, branches remain an important interaction and destination point – playing an essential role as a product sales channel and a relationship building channel for customers,” said Pat Bator, Raddon senior market and product development analyst. “With this in mind, some financial institutions are transforming their branch networks from transaction-oriented facilities to more interactive facilities. By doing so, these financial institutions will help them to continue to be centers for sales, service and advice.”
