Digital or Personal Banking – Which is More Important?

According to a recent poll published by Gallup, Americans are preferentially split between digital and personal banking. The question was posed, “If you had to give up one aspect of your relationship with your bank, the digital (you would no longer be able to interact with your bank through mobile or online channels) or the personal (you would no longer be able to visit a branch or call a call center,) which one would you give up?” The results show slight favoritism towards digital, with 53% reporting that they would give up personal service, and 47% suggesting that whey would give up mobile and online.

Even Keel

This highlights the generational gap with which many financial institutions struggle, and once again begs the question of which methods and channels are best for member satisfaction, interaction and marketing efforts. While some suggest that younger accountholders are the future of the industry and require more attention, others contend that these individuals bring a much slighter share of wallet, and that focus is better spent on their elder and more versed counterparts. The results of the poll would suggest that the truth lies somewhere in between.

The overarching question posed is a hypothetical situation that forces respondents to lean completely towards one method or the other. In reality, digital and personal preferences fall on a continuum with most members employing a mixture of both forms of interaction. It does, however, accentuate just how evenly split members currently are when it comes to the preferential mode of interaction with their financial institution.

Digging Deeper

Follow up questions in the study reveal a much more detailed picture. When the same respondents were asked if their current banking relationship was more personal or more digital in nature, roughly 62% indicated a preference match – that their current relationship is as personal or as digital as they would like it to be. The 38% of accountholders whose preference did not match their actual relationship were far less likely to be engaged with their financial institution. Meeting your members where they want to be, and engaging with them according to their own preference, is what will drive the bottom line.

This is a fact that brings with it more complications than answers. Even more revealing than the split towards preference is the level of disengagement when preference is not met. Credit unions have to meet members on their own terms and deliver a satisfying experience every single time whether digital or personal. While the conversation is often dominated by debate over which methods of member interaction and service are more important, our focus should instead be on the specific products and services that are most important to members, and how we can meet their needs best on both fronts.

If you think that your credit union could benefit from a more even-handed approach to member engagement, Technology Solutions is here to help. From design and hosting, to support and custom app creation, we drive both style and substance.