To what extent does branch design affect the way in which consumers regard a bank's image?

Are banks justified in closing branches? Can ATMs and the various distribution channels truly replace them?

How popular and widespread is Internet banking? Can banks motivate customers unused to this channel to begin to use this economic service?

Over the past two decades banks have steadily been working to make life easier for their customers. Waiting in queues for tellers has been replaced by waiting in queues for Automatic Teller Machines (ATMs). Telephone calls to the branch have been made more efficient by telephone call centres. More recently, the Internet has opened up new channels through which to service customers. Today, almost all banks offer online services and an increasing numbers offer account information via mobile phone. This increase in automation and the use of new, high-powered technologies may have provided more choice to consumers, but it has also complicated the way in which customers interact with banks.

To what extent does branch design affect the way in which consumers regard a bank's image?

Are banks justified in closing branches? Can ATMs and the various distribution channels truly replace them?

How popular and widespread is Internet banking? Can banks motivate customers unused to this channel to begin to use this economic service?

Over the past two decades banks have steadily been working to make life easier for their customers. Waiting in queues for tellers has been replaced by waiting in queues for Automatic Teller Machines (ATMs). Telephone calls to the branch have been made more efficient by telephone call centres. More recently, the Internet has opened up new channels through which to service customers. Today, almost all banks offer online services and an increasing numbers offer account information via mobile phone. This increase in automation and the use of new, high-powered technologies may have provided more choice to consumers, but it has also complicated the way in which customers interact with banks.

Technological innovation and significant investment in e-business process re-engineering has led to centralised account management and facilitated the streamlining of many of the traditional branch functions. Banks are now reaping the rewards from their technology investments: something that has helped many of the major British banking groups attain record profits in recent years. The drive to increase efficiency, maintain and improve profitability, stimulate sales and simultaneously become more market-focused has increased the willingness to invest and embrace new technologies. However, it remains questionable whether such investment has actually improved the customer relationships.

The establishment of remote banking channels, development of new money transmission and payment systems, adoption of plastic cards and proliferation of electronic funds transfer schemes are all having an impact upon the way in which consumers use their bank or building society. Mintel uses this report to examine how technology-led changes are impacting upon branch usage and consumers' money transmission preferences. The report also looks in some detail at consumer adoption of multi-channel banking and more specifically usage of ATMs and telephone banking.

In order to analyse channel usage preferences, Mintel commissioned exclusive consumer research for this report. A sample of 1,843 adults aged over 16 years were questioned about their main current account provider, their banking channel preferences and usage of ATMs and telephone banking services. In seeking to gain insight into what role next-generation ATMs and telephone banking services will play in the delivery of banking services, the research pays particular attention to the services that consumers would potentially be interested in using.

Other Mintel reports of interest include:

Interactive Money Transmissions & Banking, Finance Intelligence - UK Report, November 2001

Customer Relationship Management, Finance Concept - UK Report, July 2001

Deposits and Savings Accounts, Finance Intelligence - UK Report, July 2001

Selling to, and Profiting from, the 25-44s, Special Report - UK, May 2001

Selling to, and Profiting from, the Under-26s, Special Report UK, February 2001

Credit and Debit Cards, Finance Intelligence - UK Report, August 2001

and the forthcoming:

Interactive Selling in Financial Services, Special Report - UK, May 2002

Credit and Debit Cards, Financial Intelligence - UK Report, July 2001

Current accounts, Financial Intelligence - UK Report, December 2002