State of the Nation NZ 3: Technology changes banking customer interaction

Announcement posted by Roy Morgan Research 30 Jan 2012

Roy Morgan Research

Online banking is a good example of how the internet is changing customer interaction with financial service providers. According to the latest Roy Morgan September 2011 data, online banking has experienced solid growth over the last ten years (up 33.1% to 45.1%), at the expense of all other methods of interacting with a bank, such as branch visits (down 9.6% to 52.3%) and phone banking (down 16.6% to 23.7%).

The ATM remains the most frequently used banking channel with 67% of New Zealanders (14+) having used a machine in the last four week period, although this method has trended down over the last five years. In Australia, internet banking (45.8%) has now overtaken branch visitation (44.1%).

The implication of this change for financial institutions and their customers is that the lack of personal interaction involved in online banking may lead to a weakening of traditional relationships and loyalty, making it easier for people to switch banks or split their banking across a number of institutions.

Major Banking Channels Used in the Last 4 Weeks

Source: Roy Morgan Research, Oct 10 – Sep 11 n = 12,015.

Pip Elliott, Client Services Director, Roy Morgan Research, says:

“The increase in Internet usage and accessibility is moving bank customers away from the more traditional banking channels. With consumers having 24 hour access to online banking from their computers, mobile phones and other wireless devices, combined with our general move towards an ‘online lifestyle’, the trend looks set to continue.

“The Internet allows consumers to let their fingertips do the walking and saves time travelling to the bank, parking, queues and other hassles involved. The convenience of having finances available at the click of a button allows consumers flexibility.”

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