Local branches still important to customers despite online banking: survey

While a number of Canadians prefer to do their daily banking online, a recent survey shows most would not want to see their local branch close.

The survey conducted by KPMG Canada shows that while the number of people who never visit a branch has doubled since the pandemic, they like the security of knowing they can visit their branch should the need arise.

“If I own something, or I think I own something, I place this kind of greater importance on it,” said Geoff Rush, national industry leader for financial services at KPMG.

“You don't actually have to own it, if that's my local branch, it feels like I own it. And so what we see is a bit of that playing out, saying it feels like I'm losing something if I close my local branch.”

Shaylan Spurway, manager of marketing at Your Neighbourhood Credit Union, said customers in Sault Ste. Marie are still visiting their local branch – even though online banking is available to them.

“I think it is a sense of security and we still see a lot of people coming into the branch for larger types of transactions, mortgages, investments,” Spurway said.

“For a lot of our seniors, we find it's a wonderful touch point for them to come in. It's their outing. They get to have that personal touch with our staff in the branch and get to do their banking.”

However, looking at other parts of the world, Rush said banks moving away from brick-and-mortar has done little to alienate customers.

“In Australia, the U.K., Scandinavia, the banks over there progressively, over the last several years, have been rightsizing their physical branch networks, and there's not been a significant loss of customers through those changes,” said Rush.

When asked for their top reason for visiting their local bank or credit union, more than half of respondents said depositing or withdrawing money. The second most cited reason was opening an account.

• Download our app to get local alerts on your device
• Get the latest local updates right to your inbox