First of Three Novarica Special Reports on US Banking Consumer Channel Preference Highlights Changing Value of Physical Channels to Different Customer Segments

Despite Rapid Growth of Self-Service Channels, 58% of Bank Consumers Still Deposit Funds at the Teller

NEW YORK--(BUSINESS WIRE)-- While the branch network remains the anchor for customer relationships, a streamlined and integrated multi-channel distribution strategy with the customers’ preferences at the center is the future of banking according to US Consumer Preferences in Retail Banking Distribution, Part 1: Physical Channels, a new special report published today by Novarica, a research and advisory division of Novantas, LLC.

“The branch has already lost its traditional role as the primary destination for basic transactions,” said Madhavi (Madi) Mantha, head of banking research at Novarica and co-author of the report with Novarica senior analyst Meredith Outwater, Novantas partner Kevin Travis, and Novantas principal Ethan Teas. “Banks must respond to continuously evolving customer preferences by altering the ‘DNA’ of their branch network by moving from that of a transaction factory to one driven by a skilled sales and service culture which better supports higher-value interactions and advisory needs.”

“While banks must enhance their digital channels in response to customer demand, they must not overlook the branch’s self-service partner, the ATM. Given the investments and sophisticated capabilities of the ATM, banks must find a way to shift the 58% of customers that still deposit funds at the teller to self-service technology including the ATM. Banks that effectively manage the consumer migration can reduce staffing requirements dramatically. Looking to how the airline industry accomplished a successful transition to at-home and kiosk check-in is one option,” said Mr. Travis.

“While the IT investments required to support a bank’s evolving multi-channel strategy are significant, many of them can be leveraged across channels. For example, customer insight and analytics technologies as well as process automation and workflow tools are crucial to supporting a multi-channel distribution strategy and may be used across customer touch points,” added Ms. Outwater.

This series of Special Reports are based on the 2010 Novantas/Novarica Survey of Consumer Preferences in Retail Banking Distribution, a proprietary survey, which included feedback from 2,850 US domestic consumer households, with respondents comprising a statistically valid sample across age, income, and geographic dimensions. As part of the analysis, findings were projected onto the total US population. The survey was fielded and compiled in the fourth quarter of 2010. The survey focused on channel preferences and banking attitudes but also obtained insights into behavioral, financial, and psychographic factors.

The report published today looks at how consumers use and think of the branch network, ATMs, and contact centers (physical channels). An upcoming second volume looks at banks’ digital channels, namely online and mobile, and a third more closely examines each of the eight preference segments that Novantas analysis has identified. The second and third volumes will be published in April and May, respectively.

The report is available online at http://www.novarica.com/SpecialReportBanking_PhysicalChannels.

About Novarica and Novantas LLC

Novarica provides information, insights, and perspective on markets, operations, and technology to bank and insurance executives and project teams. The company delivers its service through published research, retained advisory services, and project-based consulting. Novarica’s research includes market and trend analyses, best practices research, case studies, and independent analyses of software vendors serving insurance and banking. Novarica’s Banking Advisory Board includes former executives from Bank of America, PNC Bank, Zions Bancorporation, Capital One, Republic Bank, and USAlliance Federal Credit Union. Novarica may be reached at 212-419-2520 or www.novarica.com.

Novarica is a division of Novantas LLC, the acknowledged leader in customer science and revenue strategy in the financial services industry. The firm specializes in investigating and interpreting customer needs, attitudes and behaviors in ways that help companies to refine marketing decisions, customer strategies, and sales and service activities. Novantas may be reached at 212-953-4444 or www.novantas.com.

For NovaricaEdward Van Eckert, 212-419-2525
[email protected]

Source: Novarica