TD Bank takes a closer look at banking preferences

What do customers actually want from banks? Do they want better interest rates, better service, more branches or more digital channels? The traditional answer is that customers don't care about branches and just wanted automated digital experiences, especially with the rise of AI. But is this actually true?

To answer these questions, TD Bank conducted a survey to gauge what customers truly want from commercial banks.

The results revealed 84% had visited a physical branch at least once in the past year and 40% said a branch is their first point of contact if they have an issue.

ATM Marketplace reached out to Steve Turley, head of consumer distribution strategy, planning and innovation at TD Bank, via an email interview to learn more about the survey results and consumers' real banking preferences.

Q. What were some of the surprising results from the survey?

A. Even with the rise of digital banking and the availability of multiple contact channels, such as contact centers and online messaging, 40% of respondents noted that a branch location is their first point of contact when they have a banking issue or question. Insights like these are why TD continues to invest in our physical stores, while also ensuring that we're accelerating our digital transformation to help power a new era of financial services for our clients.

Q. Many claim that branches will go away. Does the survey support this claim?

A. While digital adoption is on the rise, the survey shows that in-person banking is still alive and well, with the majority of respondents (84%) stating they visited a physical branch at least once in the past year and one-third (32%) of respondents having visited one at least five or more times in the past year.

Stores remain a key part of TD's engagement model, and that's very much in line with what we're seeing in terms of demand from our customers. The types of interactions and conversations that take place in our stores will also continue to evolve, as customers continue to leverage physical locations for more advice-driven conversations, versus simple transactions.

Q. What are the most important elements consumers want in a bank?

A. Three out of five respondents noted that they prefer to visit branches when making important financial decisions, such as taking out a mortgage, opening a new account or choosing a new credit card. The survey supports what we continue to observe in our stores — that customers have a preference to meet with a banker in-person to learn more about their finances and the options available to them at their bank. Given this, we're actively working to modernize hundreds of our stores over the next several years through our Next Generation Store Program so our teams will be more equipped and resourced to facilitate these important financial conversations.

We've seen that convenience continues to be important for consumers when it comes to their bank. Nearly one-third (31%) of respondents noted that convenience and nearby physical branches were the most important factors when choosing where to bank.

Q. What are the shifting consumer expectations when it comes to banking?

A. Something that has changed over the past few years is what customers expect from face-to-face interactions. With digital channels increasingly handling simple transactions, customers now rely on physical stores for real-time, personal advice and high-value services.

While we are absolutely focusing on enhancing our digital capabilities, we also want our customers to feel comfortable and confident knowing they have the ability to choose when and how they want to interact with us.

Q. What ways can the local branch meet consumers' needs especially when it comes to financial guidance?

A. At TD, we're focused on continuing to provide the same, "Unexpectedly Human" interactions our customers have come to expect from us via whatever channel they choose at that moment in time — whether that be in-person, digital or a combination of both.

In our retail locations, we've added financial advisers in select locations to facilitate conversations around retirement and investment planning. Additionally, we're implementing mobile teller sit-stand workstations that allow us to adapt them based on the type of conversation we're having with a customer or the amount of traffic we expect on a given day. These initiatives are a part of TD's effort to ensure our store colleagues have the tools they need to offer personalized, connected experiences as part of our omnichannel strategy.