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Insight Center Community Bank

Industry knowledge to help you grow your business

Move ‘Em Out to Make ‘Em Happy

It’s no secret that the number of branches for banks and credit unions has been decreasing steadily over the past several years. This has caused the monthly number of branch transactions to plummet. Whether this is due to the market correcting itself from being “over” branched in years past, or due to the proliferation of web and mobile channels, is up for debate.

Regardless, one thing is clear: it makes all the sense in the world for banks and credit unions to move transactions out of the branch and into the digital or mobile channel.

Two good reasons support this:

  1. Dollars and cents
    Teller costs are up – way up. Since 1992, the average teller has seen a 90 percent pay increase ($8.85 per hour to $16.82 per hour). This has contributed to the cost of conducting a transaction in the branch far exceeding the cost of conducting the same transaction via a laptop or smart phone.



Source: 2015 FMSI Teller Line Study

  1. Customer experience
    Dollars and cents aside, your account holders will like you for moving their transactions from the branch to the website or mobile app.

A recent Bain and Company survey titled “Customer Behavior and Loyalty in Retail Banking” found that American consumers simply do not like making a trip to the branch. In fact, U.S. consumers who use a financial institution’s mobile banking application on a frequent basis are 40 percent less likely to switch to another financial institution than consumers who rarely use the mobile channel.1

Account holders want more of the digital experience simply to maintain their sanity. Bain and Company found that having to make a visit to the branch is “2.3 times more likely to annoy” an account holder than a mobile interaction.2

So, there you have it: moving account holders out of the branch and onto the website or mobile app makes economic sense, and also leads to greater loyalty.




1 Bain report, “Customer Behavior and Loyalty in Retain Banking,” Bain and Company, November 2015

2 Ibid.