OPTIMIZING SELF-SERVICE BANKING (March 2017)

Branches and Online Channels

Account Management, Customer Service, and Sales

Terminals, Devices, and Technological Innovations

Key Finding from a Previous Phoenix SYNERGISTICS Research Survey:

According to the 2014 Phoenix SYNERGISTICS study, The Era of Self-Service Banking, most consumers felt that branch automation should make it easier for branch staff to serve customers, while fewer felt branch automation should make the branch more self-service for customers.  Have these attitudes shifted over the past two years?

  F251 Prop Graphic

Highlights of the Study

This study examines the consumer experience with self-service banking, including in-branch options and online and mobile banking.  Consumer reaction to various technological innovations is evaluated as well.

National Internet Survey – The survey will include 1,000 online interviews with consumers age 18 or older.

Key Dates

December 23, 2016 – Charter fee/Intro pricing ends.

December 23, 2016 – Final acceptance of comments on questionnaire.

March 2017 – Project Report available.

Strategic Questions

  • What is the general day-to-day approach of consumers to self-service activities? Which types of activities do consumers have experience with – such as using self-checkouts at retail stores, placing orders at self-service kiosks in restaurants, or checking in for airline flights using computers or mobile devices?
  • What is the role of ATMs in self-service banking and financial activities? How widespread has ATM deposit making become?  Will consumers adopt advanced activities and functions at ATMs or other self-service terminals?  Are advanced functions regarded as appropriate for regularly-used ATMs or for specialized terminals?
  • Are consumers receptive to real-time videoconferencing with bank representatives? Is there a preference for doing this on certain devices?  Is this a potential account acquisition channel?
  • What will be the impact of consumer usage of self-service activities on branch automation and configuration strategies? How will branch traffic patterns change in response to wider adoption of self-service alternatives?
  • How do customers view their own comfort level in using automated or self-service technology for financial activities? Are there segments who will not adopt self-service devices or functions?  What perceived disadvantages exist that might be barriers to adoption of self-service – such as distrust of technology, a desire for human interaction for some activities, or a reluctance to assume responsibility for decisions or actions?
  • Is there a relationship between online and mobile financial activities and the broader adoption of self-service financial activities? Do certain activities – such as mobile RDC or mobile access to ATMs – enhance or compete with terminal or kiosk-based self-service activities?
  • Is an orientation to or usage of certain self-service devices and systems a basis for segmenting and targeting consumers?  Can behavioral, attitudinal, or demographic traits be used to identify and distinguish these segments?

Research Issues

  • How far along the road to self-service banking are consumers?  Self-service alternatives such as ATMs, kiosks, tablets, and mobile phones have been available for a number of years.  Now, these self-service devices are appearing in branches allowing consumers to conduct transactions easily and quickly so that branch personnel are free to focus on sales of financial products and services.  Videoconferencing terminals located in branches also allow customers to interact with sales specialists in remote locations.  This can be particularly valuable for more complex financial products and services.
  • With all of these new developments, consumers can now perform multiple activities using self-service devices from depositing checks to applying for products and services.  However, for some activities, consumers may use self-service devices along with assisted self-service and full-service alternatives.  Understanding this process is essential in channel integration and branch configuration strategies.
  • Consumers’ willingness to adopt self-service banking may be a result of an overall orientation to self-service in other locations and industries such as grocery stores and airline ticketing.  It may also stem from their desire for time and place convenience.  Whatever the motivation, self-service banking is becoming an essential element as providers develop and implement banking systems and services for the future. [F251]