Banking customers are less likely than ever before to visit branches, and 43% say they bank entirely online or through a mobile app. At the same time, the ATM market is growing at a 4.9% compound annual growth rate (CAGR), as interactive teller machines (ITMs) fill the gap between face-to-face banking and what can be accomplished through website platforms and apps.
Consumers prefer financial institutions (FIs) that have some physical presence in their community for the sense of security it affords. However, as customers rely on branches for fewer and fewer services, those physical touch points can be smaller, fewer and more specialized to provide services that are best handled by banking personnel working on the ground in those communities.
In this month’s Digital-First Banking Tracker®, PYMNTS examines how banks and other FIs are working to bridge the gap between physical and digital banking and the technology that makes this possible.
Around the Digital-First Banking World
Consumers expect to conduct nearly two-thirds of their banking digitally by 2024, and most expect that will occur either through mobile apps or ATMs. Bankers believe their organizations still have a lot of work to do to get their digital customer experiences up to par, though, with just 9% saying their digital user experiences are “excellent.” FIs also understand that they need innovative digital services and access to cryptocurrency management tools to attract and retain younger consumers.
The draw of digital-first offerings applies across generations, with 62% of all consumers considering mobile apps indispensable and 73% using a mobile app as their primary banking channel. From Generation X to baby boomers, customers report that their digital banking has increased year over year, and approximately 93% of consumers have used digital payment at least once in the past year. Most consumers are motivated toward digital payments for convenience, with 57% saying digital payments are more convenient and 46% saying digital payments save them time.
For more on these stories and other digital-first banking developments, check out the Tracker’s News and Trends section.
Silicon Valley Bank on Banking at the Digital Edge
Digital-first banking is becoming the new normal for all FIs, but tech-savvy startups and innovators bring an entirely different set of expectations to banking. The clientele at Silicon Valley Bank are innovators pushing the limits of technology, and they expect nothing less from their FIs.
In this month’s Feature Story, PYMNTS spoke with Kaushal Pandia, the bank’s head of global digital acquisition and onboarding, and Milton Santiago, global head of digital services, on how they are leveraging data and technology to provide a digital-first experience that meets the expectations of the most demanding digitally minded customers.
Deep Dive: The Role of ATMs in the Digital Transformation
Combined, mobile apps and website platforms have become the preferred banking options for more than three-quarters of consumers, yet those customers cannot do all of their banking from a phone or computer. When customers who do most of their banking digitally need other products and services, their most common go-to is the nearest ATM.
Interactive teller machines (ITMs) can provide many of the services for which digital-first users would otherwise have to visit a branch, from money orders to video calls with financial assistants. More advanced ATMs also mean higher costs for deployment and maintenance, a problem that ATM-as-a-service (ATMaaS) can potentially help solve.
This month’s Deep Dive takes a look at ITMs, ATMaaS and how banks are responding to the need to quickly deploy the latest technology.
About the Tracker