While online banking rose for all types of transactions in the Novantas study, everyday processes such as transferring funds and checking balances saw the lion’s share of activity shift to online. A 2010 Empathica study similarly found that bank customers in the US and Canada prefer to use the internet when it comes to routine activities, but would rather visit a branch to conduct major transactions.
For routine transactions, such as deposits, withdrawals and check cashing, nearly half of consumers in Canada use the internet as their primary banking channel. US bank customers’ preference for online vs. in-branch banking is more balanced, with 38.2% conducting routine transactions online and 35.2% visiting branches to carry out transactions.
For major transactions, such as loan applications, 76% of consumers in the US and 85% in Canada prefer to visit a branch. US consumers are more willing than their counterparts in Canada to conduct such business online: 21% conduct major transactions online compared to 12% of those in Canada who do so.
Nearly half of bank customers in the US and Canada are concerned about the security of their transactions and personal information when carrying out financial transactions online, Empathica found.
Although the mobile banking channel is gaining popularity, it was deemed the least trustworthy. Only about 25% of US consumers and 22% in Canada said they trusted the security of mobile transactions. These concerns limited mobile banking adoption, with less than 2% of North American bank customers using mobile phones as a primary channel to conduct routine banking activities.
New technologies and corresponding shifts in consumer behaviors will continue to present the retail banking industry with opportunities to build and strengthen relationships with new and existing customers. It is essential that banks address and allay their customers’ concerns about privacy and transaction security, particularly those related to mobile banking.
