Gen-Y to Banks: Branch of the Future Is Not a Building

Gen-Y to Banks: Branch of the Future Is Not a Building

There’s a lot of talk about what the branch of the future should look like. Since GenYers will be the recipients of such future branches, I thought we should look at what they said. A recent survey by TD Bank asked millennials about their banking habits. They told us some interesting things about channel preference and what they do in each channel. It has significant impact on what the branch of the future really will be. Based on the data TD concludes that  While millennials are banking more online and on their mobile device, 52% are still visiting a branch as frequently as they did last year. – Nandita Bakhshi, EVP/Retail Distribution at TD Bank. But let’s dig into the numbers a bit and see how it really looks. Survey Data Only 53% of Gen-Yers used branches last year. So why did they visit the branch? This is not a good sign. Less than 20% of Gen-Yers visited the branch for anything that banks today see as “branch-worthy.” In other words, routine transactions such as depositing money and withdrawing money dominates the list. In fact, more Gen-Yers visit the branch to *check their balances* than to get information or open/close accounts. If you look at the change in channel usage, you get a more complete picture. Approximately 1/3 of GenYers are using the branch less often. And the 52% that are using it the same are not identifying the “building” as the thing that matters. The number one reason is security, which is something that can be attributed to current internet practices and standards. I wouldn’t place my bets...