Study: Consumers Prefer Tellers For Large Deposits

Are consumers ready to trust self-service banking?

Research and analysis company Mercator Advisory Group recently released the results of a new study that asked this question. Entitled “Self-Service, ATM and Other Channel Banking: Omnichannel Experience Needed,” the report was the eighth in a series of surveys Mercator conducted in 2012 on the state of the banking industry.

In total, researchers surveyed more than 1,000 consumers to determine their comfort level with self-service banking options. The results were mixed. Some demographics favored more traditional methods of banking while others were ready to embrace the newest alternatives.

But one trend was clear: Americans are using new alternatives for certain transactions, but their willingness to use these services depends on the value of the transaction.   

“Consumers are taking advantage of the variety of self-service banking options at their convenience with more frequent engagement using more banking channels than ever before,” Karen Augustine, the author of the report and a manager at Mercator Advisory Group, said in its summary.

In this PYMNTS.com Data Point, we’ll break down what consumers said about omnichannel banking, and look at whether their habits are changing as fast as some industry commentators are leading us to believe.

Young Adults Prefer Self-Service For Small Deposits

The majority of respondents – 55 percent – said they would prefer to deposit a $50 check with a bank teller. But, this sentiment was not consistent across all demographics. According to researchers, young adults were the least likely to report a desire to use a teller for a small transaction, with only 38 percent issuing this response.

By comparison, 33 percent said they would rather use ATMs and 22 percent said they would rather use a PC or smartphone.

Smartphone Owners Prefer Tellers For Small Deposits

Only a small portion of smartphone users surveyed indicated they are ready to rely on these devices for everyday deposits. Twenty-two percent of smartphone owners indicated they would rather use their phones than an ATM or teller for a $50 deposit.

By comparison, 46 percent of smartphone owners said they would prefer to use a teller at a branch, and 28 percent said they would opt for an ATM.

Tellers Are Still The Most Trusted Method For Large Deposits

When asked which method they would prefer when depositing a $1,000 check, respondents indicated they would choose bank tellers. This included 58 percent of high-income survey takers making more than $100,000, and 58 percent of those who reported between $75,000 to $99,000 in annual earnings.

Even among younger survey takers, this was the clear number one option: 59 percent of young adults said they would prefer a bank teller in this scenario. Seventeen percent stated that they would be comfortable using an ATM, and 15 percent said they would use a smartphone.

This consumer reliance on bank tellers presents a potentially troubling problem for the industry. With bank transaction volume falling rapidly – by 45 percent over the last decade – banks will need to determine if the high cost of keeping branches and tellers is worth the continued investment if it boosts consumer confidence in their overall services.

For more insights, purchase the complete report here.