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COMMUNITY BANK OF FLORIDA IBT helps Community Bank of Florida transform a vacant site into a vibrant, new full service branch in Lakeland, FL. |
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2006 IBT/MCA Market Pulse Survey Finds U.S. Consumers Still Seek A Face-to-Face Experience From Financial Service Providers ATLANTA, Mar 21, 2006 The survey of almost 700 U.S. adults using financial services found that despite decades of predictions that technology-driven channels like ATMs and online banking would replace traditional banks, 50 percent prefer to bank face-to-face (bank branch, in-store branch and drive through). Thirty percent of those surveyed prefer to bank online, 18 percent opt for ATMs and 2 percent say mail or telephone. For more information or to download a complete copy of the 2006 IBT/MCA Market Pulse Survey report, please visit www.ibtenterprises.com/ideastudio.asp. While it is true the vast majority of U.S. adults use multiple channels to conduct their financial transactions, which include the stand-alone bank branch, drive-through windows, in-store banking, online banking and ATMs, 76 percent of Americans "love" or "don't mind" going inside the branch to conduct business. The study showed that consumers preferred face-to-face interaction with their financial institution representatives for more complex transactions such as making a deposit (69 percent), applying for a loan (65 percent) and opening a new account (64 percent). Automated banking (ATM, online and telephone banking) was most popular with respondents when it came to paying bills (64 percent), cash withdrawal (56 percent) and transferring funds (54 percent). "Savvy banks and credit unions know that having convenient touch points opens greater opportunities for them to delight consumers and increase their share of that consumer's business," said Mylle Mangum, CEO of IBT, a leader in design and construction services for the financial services and specialty retail industries. "By offering a robust and integrated channel of banking methods, financial institutions are in a better position to solidify their relationships with consumers. Moreover, the delivery channels should match the consumer's life stage/life cycle needs. For instance, drive-through windows are extremely important to families with children." Eighty-four percent of U.S. adults say they use retail or commercial banks, 40 percent say they use credit unions and nearly a third (28 percent) say they use securities and investment institutions. Sixty-nine percent of U.S. consumers have designated a retail or commercial bank as their primary financial institution and 19 percent have designated a credit union as their primary financial institution. Highlighting the old marketing tenet -- "get them early and keep them" -- when asked about promotions to switch to another financial institution, 41 percent of U.S. adults said that "no amount of money or promotion could ever get me to switch." However, one-third (33 percent) said they would switch if offered a $250 gift card and 20 percent said they would switch for 1 percent difference in their interest rate for deposits. Interestingly, 5 percent said they would switch financial institutions for an iPod. And of course, the toaster is now officially dead with only one percent reporting they would switch to a new financial institution in order to receive a new toaster. Other findings on the uses of financial institutions include:
Several attributes are important in evaluating a financial institution, such as having convenient locations, fast and efficient service and resolving problems quickly. The strong desire to conduct deposits at branches exemplifies the need for well-designed, location-conscious facilities that offer fast and efficient service. More than one-third (38 percent) of U.S. adults most often deposit money while inside the branch and a near equal number (34 percent) most often conduct deposit transactions through the branch drive-through window. Illustrating that personal relationships are less common in the world of financial services today, 54 percent said that they do not have a good relationship with a specific individual at their primary financial institution. However, 60 percent of those surveyed say they have been banking with the same primary institution for five or more years. When customers do switch financial institutions they do so largely because of life events (50 percent), product and service offering shortcomings (48 percent) or poor customer service or a bad experience (38 percent). "Despite banking consolidation and automation, institutional relationships still matter because the majority of those surveyed have been with the same bank for the last five years or more," said John Rosen, executive director of MCA Works. "And those who left did so because of dissatisfaction with customer service issues ranging from product offering shortcomings to poor customer experience, so the survey indicates the relationship matters and can be improved." While several attributes were important in evaluating a financial institution, some of those areas fell short on consumer satisfaction. For example, nearly all consumers (96 percent) felt that charging reasonable fees is important; however, only 81 percent were satisfied with their financial institution in this regard. Likewise, 94 percent felt it is important for their primary financial institution to offer competitive interest rates, and only 82 percent felt satisfied in this regard. Eighty-seven percent of those surveyed felt it was important that their primary financial institution "really wants my business", and only 81 percent felt satisfied with their financial institution in that regard. Seventy-five percent of those surveyed said that their financial institution has designed its branch for people like them. There are several factors that consumers feel are most ideal when it comes to branches:
Underscoring the opportunity for branches to support small businesses with valuable add-ons, the majority of U.S. adults (59 percent) said that offering services such as postage and shipping would enhance their visit to their financial institution's branch. Approximately one third (30 percent) said offering wireless Internet access and an almost equal number (27 percent) said that offering a coffee bar inside the branch would make them more excited about visiting their financial institution's branch. This also illustrates a possible trend that time-pressed consumers may prefer financial institutions that offer expanded services in an effort to help consumers reduce time spent out of the office or home. The data show that all age categories were interested in the availability of postage and shipping services within a branch. The youngest age group (18 to 24 year-olds) was most interested in this service. If a consumer wins the lottery, one might be surprised about who that lucky person might call first for financial advice. When asked about unexpectedly coming into a large sum of money ($250,000), 25 percent of U.S. adults said the first person they would call would be an accountant, 19 percent said a family member, 12 percent a banker, 10 percent stock broker, six percent friend and 1 percent a real estate broker. Interestingly, 27 percent of those surveyed said they would not call any of these individuals for financial advice. Investing that money is a little more clear-cut. Thirty percent of Americans said they would likely spend the majority of a $250,000 windfall to pay off debt and an equal number said they would invest the money in a savings account. Eighteen percent said they would spend the majority of the money on a house. The majority (60 percent) said if they choose to invest any part of the newfound $250,000 they would do so through an alternative financial institution such as a stock broker or mutual fund company rather than their current primary financial institution (40 percent). When asked to personify their financial institution (for example who it would resemble the most), 47 percent of U.S. adults selected Donald Trump, suggesting consumers revere their financial institution as smart, savvy and successful. Second on the list was Mary Poppins with 39 percent support followed by Ebenezer Scrooge (8 percent) and Tony Soprano (6 percent). Overall the study found that 87 percent of U.S. adults use financial services providers such as retail banks, credit unions, savings and loan and financial securities firms. The survey results are based on Americans that use the above financial services providers. About The 2006 IBT/MCA Market Pulse Survey Editor's note: Camera-ready charts and graphs on the findings from The 2006 IBT/MCA Market Pulse Survey are available at www.ibtenterprises.com/ideastudio.asp or by calling Brian Boudreaux at 404-929-0091 ext. 211. About MCA |
"From the signing of the lease to the opening of the branch, the entire process took less than 60 days. IBT was able to drastically reduce the construction timetable without sacrificing the quality of work. IBT was instrumental in helping us secure this location and has surpassed our expectations with their excellence of design, construction and training."
Dale Roberts Additional Resources
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