Gen X, were more likely to reduce branch frequency than older generations by a slight margin. Te discrepancy between generations was larger with respect to increased mobile app usage. Te proportion of younger consumers using their mobile apps more frequently was more than 50% while the percentage of baby boomers and seniors leaning more heavily on mobile apps during the pandemic hovered closer to 40%. Older generations demonstrated a higher propensity to maintain their old behavior patterns despite the pandemic. Still, this data suggests that the trend toward digital appears strongly across age demographics.


Banks are already responding to the overall shiſt toward digital. Aside from making continued investments in augmenting their digital capacities, banks significantly cut their branch footprints in 2020. Net branch closures in 2020 hit its highest level since at least 2012, as banks sought to boost operational efficiencies in an environment where net interest income remains under pressure due to low interest rates, explosive deposit growth and lackluster loan growth.


As more consumer behavior shiſts to digital channels, the relative value of maintaining a dense branch footprint has decreased. However, consumer demand for branch services has not disappeared. Many customers were still using branches during the pandemic. About 36% of survey respondents indicated they had visited a bank branch in the prior 30 days. Most of these respondents visited multiple times.


Te primary services they sought at branches were related to depositing and withdrawing cash and checks. Nearly 54% withdrew or deposited cash during their most recent branch visit, 40% deposited a check, 26% cashed a check and 50% used an ATM.


Although mobile apps may not be able to easily service certain cash-based needs, most mobile apps are equipped with check deposit functionality. Approximately 24% of survey respondents indicated they had used photo check deposit for the first time since the pandemic began, more than any other feature. Other features that were recently discovered by more than 20% of survey


respondents include utilities like account-to-account money transfer, bill payment and peer-to-peer payments. Tese features also tend to be highly valued by customers in general.


Te new discovery of highly valued mobile utilities may speak to why most users who have started using mobile apps more frequently anticipate continuing to lean on mobile apps aſter the pandemic ends. Nearly 88% of respondents who indicated they use their mobile apps more frequently because of the pandemic also said that they anticipate continuing or increasing their current level of mobile usage aſter the pandemic ends. Conversely, 92% of respondents who indicated no change in mobile app related behavior anticipate continuing their current level of usage aſter the pandemic ends. Judging by customers’ anticipation of their own future mobile app usage, it seems that the behaviors that customers have established in the 12 months since the pandemic began are likely entrenched to a significant degree.


Although users discovered several new features in the past year, most customers had used their bank’s mobile app in one way or another prior to the start of the pandemic. Te percentage of respondents who used a mobile app for the first time in the past year was small, less than 2%. Unlike other consumer fintech apps that saw dramatic increases in new account openings in 2020, mobile banking apps appear to have experienced a shiſt in the role they play in users’ lives. Many retail banking consumers who may have previously used their mobile apps rarely and sporadically now appear to be leaning on them as a regular channel for accessing important banking needs. As the pandemic persists, these customers appear to be getting more comfortable with this new relationship.


S&P Global Market Intelligence offers solutions to help bankers evaluate market opportunities, manage risk and maximize performance.To learn more, visit spglobal.com/MBA. For more information, contact Stacy Sheehy at 434-529-1978. S&P Global Market Intelligence is an MBA endorsed partner.


THE MISSOURI BANKER 19


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32