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Are all the stats and stories around banking service shifts and HQ transformation leaving you overwhelmed? What does it mean for you and you staff? For your branches, it’s a shift from transactional to an advisory service model. For your HQs, it’s offering a different variety of collab spaces and tech to support remote and hybrid workers. 

Let’s take a look at some of the most recent facts and figures and break down their importance to you and your institution's future. 

Branches matter! 

1. 62% of consumers prefer to use banks or credit unions that have a physical presence (Forbes) 

2. Customers prefer branches over digital channels when opening new accounts for both simple (such as savings accounts and debit cards) and complex products (such as loans). (Deloitte)

3. This preference for branches in opening new accounts is uniform across generations—baby boomers, Gen Xers, millennials, and even the
youngest consumers, Generation Z. (Deloitte)

4. 55% of financial services leaders surveyed said that accounts opened online are of lower quality (balances) compared to those opened in the branch. (BAI).  

Gen Z

5. 30% of 18–24-year-olds said that access to a physical branch had become more important to them over the past year, the highest of all the age groups. (epam) 

6. Only 15% of Gen-Z respondents said the branch had become less important, suggesting that, if anything, the effects of the pandemic have highlighted the importance of in-person interactions. (epam)

7. 18-24-year-olds said that they would be more likely to use their bank’s physical branch if they were more experiential—that is if they were able to offer services, such as financial education, talks by financial influencers and interactive tools. (epam) 

Why these numbers matter 

It’s really in your best interest to provide convenience through branches. For all financial institutions, other services that require a more personal interaction include getting a mortgage and investment strategy advice or dealing with potential fraud. With higher stakes and stress involved, a friendly in-person face, offering compassion and confidence, makes the process more tolerable.

 

HQ / back-office  

8. Post-pandemic, survey participants responded that once they got over the initial hurdle of having a new routine, the majority of employees (62%) actually preferred to work mostly on-site. (Envoy At Work 2022 Workplace Trends Report) 

9. 58% of survey respondents said their orgs have invested more in the workplace in (Envoy) 

10. 40% of respondents said their organizations invested more in conferencing technology, such as monitors, cameras, and microphones. These technologies are critical to enabling flexible work models such as hybrid work. (Envoy) 

11. The vast majority of respondents (79%) said their organization planned to adopt hybrid work moving forward. (Envoy) 

 The generations in the workplace 

12. As of the third quarter of 2021, 50.3% of U.S. adults 55 and older said they were out of the labor force due to retirement (Pew) 

13. Millennials are estimated to represent 75% of the workforce by 2025 (Teamstage) 

14. Gen Z will represent 27% of the workforce (NCEC). 

15. Let’s not forget Gen X in the middle, representing about 33% of the workforce (ICIMS). 

Why these numbers matter 

Your back office / HQ space has probably grown or will, in support of the expanded digital services that are gaining popularity. Consider how and why technology modernization and physical space updates can help you attract and retain talent from ALL the other generations. 

Technology is intrinsic to Millennials and Gen Z, who have grown up with cell phones, laptops and instant access to information. Gen X has spent their professional lives embracing the internet and other tech. Offering a broad spectrum of collaboration, task-management and production technologies attracts high-performing workers. 

Need help getting started? DBSI can help with feasibility studies for branch planning and HQ analysis for an actionable, data-backed HQ plan. Contact us!