Bank branches take a back seat to Net, drive-through

In Canada, bank customers have shifted away from the branch. 46% never visited a branch last Fall.

London Free Press – Business – Bank branches take a back seat to Net, drive-through

An annual research study released recently by research organization TNS Canadian Facts shows just more half of Canadians (54 per cent) visited a bank branch last fall, the lowest level of branch banking since the tracking study began in 1994.

In other parts of the study, here are some numbers:

By the numbers:

– 16 per cent of Canadians usually go to a branch to conduct a transaction with staff at least once a week

– 91 per cent of Canadians have a card that gives them access to a self-service banking machine

– 78 per cent of Canadians made transactions at automated banking machines last fall

– 80 per cent of Canadians report that they have made an Interac Direct Payment

– 34 per cent of Canadians claim to be signed up for phone banking

– 73 per cent of Canadians reported having access to online banking
compared to 67 per cent in 2004. Most — 65 per cent — have access at
home

– 40 per cent of Canadians have registered for online banking

– Seven per cent of Canadians not signed up for online banking indicate
being very or fairly likely to register for it in the next six months

– 80 per cent of Canadian adults hold a credit card of some sort and 66 per cent used it the month of the survey

– 66 per cent of Canadians claim to have written at least one cheque in the month of the survey.

Full article about the study:
Tue, April 18, 2006
By P.J. HARSTON, BUSINESS EDITOR

Canadians are abandoning their traditional branch-banking habits, turning instead to e-banking and bank machines.

An annual research study released recently by research organization TNS
Canadian Facts shows just more half of Canadians (54 per cent) visited
a bank branch last fall, the lowest level of branch banking since the
tracking study began in 1994.

The study also shows the number of monthly visits for those who go to a branch has steadily fallen.

“As people become increasingly comfortable doing their day-to-day
transactions through electronic channels such as Internet banking and
bank machines, visiting the branch is becoming less necessary, but it
is certainly not irrelevant,” said Rhonda Grunier, a vice-president at
TNS Canadian Facts.

“Canadians still demand choice in the ways they handle their everyday
finances, so they can use the channel that best suits their needs.

“Financial product purchases, such as opening accounts or acquiring
loans, continue to be primarily done at the branch,” Grunier added.

Online banking appears to be maturing, with only modest growth over the last two years.

Last fall, 34 per cent of Canadians reported using an online banking
service, compared to 33 per cent in 2003. More than half of Canadians
with Internet access have signed up for online banking.

Telephone banking continues to decrease in popularity as more people go online for their banking needs.

Just 19 per cent of Canadians had used a telephone banking service last
fall, the study said, down from its peak of 26 per cent in 2001.

Internet banking, the study shows, is primarily used for
paying bills, checking account balances and transferring money between
accounts. About a quarter of those who bank online use an electronic
bill presentment service to receive their bills directly to their
computer.

“Convenience is a major factor behind the popularity of
online banking. The main reason why non-users are not interested in
adopting online banking is that other channels are available which
adequately meet their needs,” Grunier said.