Digital FI Offerings More Valued Than In-Person Service, Survey Finds

Financial institution customers are placing more value on ATMs and digital offerings than on in-person service, according to new data from payment card platform provider Marqeta.

The Oakland, Calif.-based firm’s survey of over 1,200 U.S. residents found that 31% felt that easy-to-access ATMs and no ATM fees were the most important benefits their financial institutions provided, but only 15% said an in-person presence was the most important benefit. More people (21%) said an easy-to-use mobile app was the most important benefit a financial institution can offer.

Members still do visit branches, the study found. Nearly half (49%) of the respondents had gone to a branch during the past month, and 24% had gone within the last three months. Twenty percent of people age 50 to 65 said an in-person presence was a financial institution’s most important benefit — double the proportion of people age 18 to 34 who said the same.

Inertia is still a strong force keeping many members with their existing financial institutions, though. Fewer than a quarter of the survey respondents said they couldn’t imagine changing banks.

“Consumers’ desire for ease of use keeps many people with their current banks, simply because it may seem easier to stay with what they have than to do something different. However, many customers  —  particularly millennials  —  are open to changing their banks or payments processes to enjoy great convenience and experiences immediately and in the long term,” the study said.

About a third of respondents said the biggest obstacle to changing banks was that it seemed like too much work. Another 13% were worried about what would happen to their data, 12% said other banks didn’t have enough ATMs nearby and 11% said there weren’t enough other options. About 7% said they weren’t sure how to get started.

Two things could give many members they push they need to switch, however. Twenty-nine percent said having no fees was the strongest incentive to change banks; another 27% said cash bonuses could do the trick. About 21% said higher interest rates on savings were strong motivators.

New competitors may also spur movement. According to the data, 43% of respondents would consider using a digital-only banking service, and almost half (46%) were willing to use Amazon, Facebook or Google for their banking needs if those companies introduced banking services.

Other notable findings in the Marqeta survey included:

• 25% withdrew cash from ATMs at least weekly.
• 24% withdrew cash from ATMs “rarely if ever.”
• 34% said cash would be completely obsolete in 20 years.
• 66% said checks would be completely obsolete in 20 years.
• 19% said credit cards would be completely obsolete in 20 years.
• 62% have never paid with a mobile wallet at checkout, but 52% were open to using one.
• 53% have paid for something in cash expressly to avoid leaving a record of the purchase.
• 10% said a banking error was the strongest incentive to switch banks.