FIS study reveals 42% customers in 55+ age group do physical banking

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Though the pandemic has driven more and more people to conduct banking transactions and enquiry online or through phone apps, the share of those who visit branches of a bank form 10% to 40% depending on the age.

Recently, a joint study by FIS, a leading provider of technology solutions for banks and capital markets firms globally, revealed that in the past one year between June 2020 and April 2021 almost 70% of the total consumers used mobile payment apps for making payments rather than going to the branch of their bank.

As many as 94% of generation Y and Z (18 years-29 years) consumers own mobile wallets or apps of specific banks. Across age groups more and more people are showing the inclination of switching to digital routes, revealed the study.

End result

The survey was conducted across five age groups between 18 years and 75/80 years. Across all the age group mobile or app-based banking is leading. The share of physical banking varies between 10% and 40% depending upon the age of the customer.

In the age group of 18-40 years, the least number of customers visit a branch.

However, in the section above 45 years, physical banking is still a much-preferred medium. The study revealed that among 18-40-year bracket branch banking varies between 10% and 30%, whereas above 45 years, the share of physical banking rises between 30% and 40%.

18-24 years

In this age group, 70%, or seven persons out of 10, are using mobile banking or mobile wallet rather going to the branch for any transaction.

Five out of 10 persons prefer to go to the ATM instead of a bank branch. Communication with bank staffs is generally conducted over phone and e-mail.

Only 10%-12% prefers physical banking in the age category.

25- 29 years

In this age group, slightly more than seven people out of 10 are using mobile wallet or bank apps. 49% consumers still prefer to go the ATM.

Only 32% people of this age group still prefers to visit branches.

30-40 years

Surprisingly 75% people from the age group prefer using mobile banking or mobile wallet rather going to the branches, which is quite high. 46% consumers prefer to go an ATM rather than visit a branch.

Around 38% people feel safe to communicate with bank staffs over phone and e-mail.

Only 25% prefer branch visiting to make any types of banking work.

41- 55 years

Six out of 10 people prefer mobile or wallet banking rather than branch banking while 40% prefer ATM over physical banking.

Around 35% people in this age group still prefer to go to the branch for banking purpose amid pandemic time.

Over 55 years

Around 55% or 11 persons out of 20 prefer online or mobile banking in this age group while 52% prefer to go to an ATM. Around 42% of the elder people prefers branch banking while 28% people feel safe to communication with bank staffs over phone and e-mail.

Survey parameters

The FIS survey was conducted among 10,000 adults across all the age groups. Both urban and rural populations were taken into account while doing the study, the ratio of urban and rural population stood at 66: 34 among 10,000 samples.

“The pandemic has led India to a new phase of digital payments adoption. To be successful, it’s vital that the banking sector provides technology-centric strategies which meet the diverse preferences of consumers’ rapidly changing habits, while also driving financial inclusion for underserved communities around the country.” said Bharat Panchal, chief risk officer, FIS.

According to RBI data, until June 2016, India had more than 1.5 lakh commercial bank branches. The number might have crossed 2 lakh branch mark, feel experts.

According to the unofficial data till fiscal year 2019, there were around 18 commercial bank branches per one lakh adult population in India, compared to approximately 12.82 commercial bank branches in fiscal year 2014.