While many financial experts rave on about millennials desire for the digital realm, some traditional methods are preferred by the much sought after segment.
61% of UK-based millennials prefer to open a bank account in person, compared to 26% preferring to use the bank’s website. Only 4% would rather use a mobile device.
The research from LexisNexis found that this viewpoint wasn’t only limited to the UK as millennials across the world preferred in-person interaction when opening accounts.
In the US, a whopping 81% stated their preference to be in person. Germany (74%), Hong Kong (76%), Malaysia (59%), Mexico (62%), and Brazil (74%) also wanted face-to-face interaction when opening current accounts.
Traditional non-digital methods were not only liked when it came to current accounts. More millennials (47%) were likely to open a credit card account in person than online.
Many reasons were put forward for not opening accounts online. Time was a key factor. More than half (53%) wanted to be able to open an account online in under 15 minutes, but 63% were more than willing to spend 30 minutes or more when doing so in person.
Time-consuming processes (26%) or too many steps (15%) can also cause millennials to terminate an account open session. In addition, the quantity (21%) or type (38%) of information requested can deter potential millennial customers.
This research comes soon after HSBC’s announcement that it plans to shutter a further 62 branches, reducing its network to 625 outlets, and focus on the digital experience. A decade ago, its branch network totalled 1,501. However, many claim that this digital push could be the wrong move.
Steve Arnison, director at LexisNexis, said: “More and more banks are turning their backs on bricks-and-mortar branches, and instead dedicating their focus and investment on digital alternatives such as online banking or mobile apps. Research that we conducted earlier this year has however highlighted that this may not be what the tech-savvy millennial customer wants.”