Customers who visit bank branches for basic transactions are three-times more likely to switch banks as against those who rarely visit branches, according to the sixth annual report on consumer banking behaviours by Bain & Company.
On the contrary, customers depending on mobile and digital channels have been found to be 40% less likely to switch banks compared to those who seldom use mobile.
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More than half of the respondents said they prefer their mobile phone over their physical wallet when asked which they would miss more for a day.
Among the 17 countries surveyed in the report, mobile interactions have been found to exceed online interactions in 10 countries, with the Netherlands and South Korea topping the list. Japan and Germany lag behind owing to high adoption of ATMs and online banking.
The report further reveals that mobile apps used for routine transactions are one-third more likely to positively affect customers as similar transactions in the branch.
Conversely, a routine visit to the branch is 2.4 times more likely to annoy, which is a pattern repeated across diverse regions such as the US, the Netherlands and South Korea.
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By GlobalDataAccording to the report, about 30% of customers across the globe already use mobile channels to research or buy banking products, and the behaviour is most pronounced in Asia.
Product research is done through mobile in China and India by 52% and 43% of customers respectively, while in China and the UK, purchase is made through mobile by 20% and 18% of customers respectively.
The authors of the report opined that banks to focus on enhancing the mobile experience by making it fast, intuitive, convenient and capable of handling a customer’s basic needs.
Lead author of the research and a Bain partner Gerard du Toit said: "To make the product research and purchase experience shine on a mobile device, the products themselves must be reworked to make them easier to understand. The internal processes must also be overhauled to simplify the chain of activities."
