Novantas Consumer Research Reveals a Growing Opportunity for "Thin Branch" Strategies, with 46% of Consumers No Longer Dependent on Branches

NEW YORK, Dec. 3, 2014 /PRNewswire/ -- Today, Novantas, Inc. released the 2014 edition of its Multi-Channel Customer Research survey, revealing crucial new insights into how consumers are interacting with bank branches and ATMs versus electronic banking channels. Building on three prior editions, the 2014 consumer survey demonstrates that while branches remain critical for acquiring and retaining a meaningful share of primary relationships, the role of the branch in the day-to-day life of consumers has shifted dramatically.

Consumers were evaluated across two axes – "branch dependence" (use of the branch) and "branch attachment" (value of the branch).  While only 7% of consumers surveyed are truly "Internet Ready" (i.e., neither use nor value the branch), an additional 39% are no longer dependent on the branch for regular transactions. In other words, nearly half of consumers regularly transact via electronic channels, but a large majority still believes that the branch is important in choosing their bank.

"Investment in technology has accelerated the shift in the consumer mindset from branch dependence to perceived branch convenience. The knowledge that a branch exists provides a necessary level of comfort, but customers prefer to transact with their bank from the comfort of their home, office or on the go," says Chris Musto, Managing Director of Novantas. "In the coming years, virtual channels will be able to accommodate not only basic banking transactions, but also increasingly complicated service issues, and this will lead to a further drop in branch attachment."

Combined with results that demonstrate consumer shopping preferences continue to shift online, the research supports a new method of network planning that revolves around building a customer experience. "The traditional distribution strategy relied solely on branch dominance, but as preferences shift to online channels, banks need to adjust their spending and strategy accordingly," comments Kevin Travis, Managing Director of Novantas. "Banks must be fully capable of effectively handling customer service and sales issues at every touch point. And, more importantly, banks need to ensure positive experiences as customers move from consideration to fulfillment – no matter what combination of channels are used in the process."

For access to the full report, visit www.novantas.com.         

About the Novantas Multi-Channel Preferences Research
The Novantas Multi-Channel Customer Research is conducted through an online survey provided to a panel of customers which is statistically significant across age, income and geography. The 2014 edition updates studies conducted in 2012, 2011, and 2006 and includes data on 4,125 respondents.

About Novantas, Inc.
Novantas, Inc. is the leader in customer science and revenue management strategy for the financial industries. A FinTech 100 Company, its Advisory Services, Analytic Solutions, Research and Marketing Services specialize in investigating and interpreting customer needs, attitudes, and behaviors to help banks refine pricing, marketing decisions, customer strategies, and sales and service activities. For more information, visit www.novantas.com.

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SOURCE Novantas, Inc.

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