Banks still rely on branches to start accounts
Most types of accounts can't be originated online
By Juan Rodriguez and Laura Mohammad
Banks long ago embraced online banking for transactions. But to start an account? You still need to go into a branch for that, according to a survey of 156 North American financial institutions by Celent.
The financial information research and consulting company surveyed financial institution executives in October 2014, asking them, "Is your institution selling and originating new products digitally? Select which options are available to your customers."
Checking and savings accounts and mortgages were the only products that a majority of institutions let consumers initiate online -- and only if they use a traditional desktop or laptop computer.The ability to originate an account on a mobile device remains in infancy, with only small fractions of institutions allowing the process to begin online.
Credit or prepaid cards could be originated online at only 45 percent of the institutions.
Celent looked at online account origination as part of its research into the abundance of brick-and-mortar bank branches. Its research found that between 2000 and 2010, other retail sectors trimmed back on building stores as consumers moved their shopping online. But in that span, the density of bank branches actually grew, from 230 branches per million Americans to 270 branches.
"Celent looked at a dozen other retail categories and couldn't find a single one (except banks) that grew store density over the same period," senior analyst Bob Meara wrote.
To use the graphic on your site, use the following code:
Published: March 4, 2015
- Digital wallets: Merchants to pave the way for consumer acceptance – Despite security concerns, more Americans are willing to use digital wallets, if merchants oblige ...
- Infographic: Debit, credit cards still killing off checks – The Fed’s 2015 shows checks account for only 12 percent of U.S. noncash transactions compared to 16 percent in 2012 ...
- Infographic: The growing ways we e-pay – More and more Americans are discovering how handy e-payments can be ...