Most predictions hold that the future of banking is digital, and financial institutions of every size now offer customers digital ways of opening accounts. Yet according to a new J.D. Power retail banking survey, most customers (even millennials) prefer opening an account at a physical branch. This is due to financial institutions struggling to make digital onboarding clear and quick, confusing and frustrating potential customers with product options and the other necessities to open an account. In fact, most financial institutions need not only to provide digital solutions to the services they offer but also update and streamline their behind-the-scenes processes to match a digital world. With customers becoming increasingly digital however, it is likely that digital onboarding will only get more simplified and faster in the near future.
The survey also revealed that 42% of customers that conduct banking operations at a physical branch expressed that were not likely to switch financial institutions, whereas this figure was only 31% among those that conduct banking transactions online. For now, it seems that a combination of digital and physical will create the most balanced, healthy relationship between financial institutions and their customers.