“All of the Above” Isn’t a Channel Strategy

“All of the Above” Isn’t a Channel Strategy

December 12, 2024

Digital Banking

It’s well-documented that mobile is the primary or preferred banking channel for Gen Z and millennial consumers, and that digital overall dominates consumers’ interactions with their bank. According to an American Bankers Association survey, the most-used banking method for 64% of Gen Zers and 68% of millennials is mobile. The vast majority for each generation measured is digital.

Bankers should ask the question: Why measure primary channel at all? It’s clear that other channels’ importance for day-to-day banking tasks has receded. Better to ask which features are most important to a channel and how to optimize investment in each to serve those functions. A clear part of that approach is spending on a consistent and complete digital experience. Another piece is trimming and retooling alternative channels.

The details depend on a bank’s business strategy, but here are a few considerations:

The digital experience should be consistent between mobile and online. Digital may be formatted to fit different platforms, but available features should be substantially identical based on what financial information customers need to know, at what cadence, and the actions they need to take on it. There’s no good reason for mobile and online to be siloed.
The branch, as we wrote, should focus on high-value interactions defined by return on investment — driven by customer demand and the value of a product or service to a bank’s bottom line. That includes continuity with digital channels but also uniquely in-person services that aren’t easy to deliver via digital.
Basic services provided through digital shouldn’t necessarily be duplicated in another channel. Digital and particularly mobile have features that customers want to use quickly or briefly, like basic account information, for example, balance and transaction history, or basic money-movement tasks.
Digital with basic features should add functionality that doesn’t make sense in other channels. Certain features are digital-only (or at least digital-first), like managing card settings, chatting with a virtual assistant or customer service representative, accessing a credit score, or tracking personal financial trends.

Bankers need a channel strategy to make sure that investment is tied to business value. The answer to meeting evolving customer needs and expectations for touchpoints is not to add one more channel to what already exists or duplicate what’s already available. It’s to choose the best channels for certain functions, invest in them, and prioritize what matters to customers. “All of the above” is not a worthwhile approach. As with most things, bank leadership needs to be thoughtful and deliberate to drive favorable outcomes.

“All of the Above” Isn’t a Channel Strategy

“All of the Above” Isn’t a Channel Strategy

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