U.S. Bank Consumer Study Raises New Perspective on How Banks Balance Technology with a Human Touch

Company introduces team of expert coaches to address consumer trends
and provide relatable insights

MINNEAPOLIS–(BUSINESS WIRE)–Approximately 70 percent of consumers across all generations (85 percent
of millennials) believe banks that are current with the latest
technology are more trustworthy than banks that lag; however, nearly 4
out of 5 Americans say when it matters most, they value people more.


The findings come from The Balancing Act: U.S. Bank 2015 Outlook on
People and Technology, which uncovered some surprising facts about how
consumers expect to use financial services in the future.

“American consumers want more from their banks than apps — they want
advocates,” said Gareth Gaston, executive vice president, Omnichannel,
U.S. Bank. “Everything we do at U.S. Bank is guided by a
relationship-first philosophy. Our role in that relationship is to
discover what’s possible for our customers, combine it with what they
are aspiring to and guide them along the way.”

The U.S. Bank Coaches Program connects a team of industry experts to
consumer issues, offering practical insight and advice on relevant
topics. Coaches will share knowledge and tips in their respective areas
of expertise to empower consumers to get the most from their banking
relationships. From finding your passion in the community to
understanding how to think about the latest technology trends, the U.S.
Bank Coaches Program will provide relevant insights and new ways to
think about today’s trending topics.

The team and their areas of focus include:

  • Community Development: Zack Boyers, CEO, U.S. Bank Community
    Development Corporation;
  • Community Engagement: Reba Dominski, Senior Vice President, U.S. Bank
    Foundation;
  • Omnichannel: Gareth Gaston, Executive Vice President, Omnichannel;
  • Customer Experience: Robyn Gilson, Vice President, Customer Experience;
  • Wealth Management: Margaret Paddock, Senior Vice President, The
    Private Client Reserve;
  • Innovation: Dominic Venturo, Chief Innovation Officer; and
  • Cyber Security: Jason Witty, Chief Information Security Officer.

Banking Relationships: There’s No App for That

There is a rapid decline in some traditional banking methods, according
to the U.S. Bank survey. Specifically, 29 percent of millennials report
they have never written a check, compared to just 16 percent of Gen X
and 13 percent of Baby Boomers. Despite the decline in paper checks, the
survey also found people are not in favor of completely digitizing
personal engagement. Almost two-thirds (63 percent) of Americans believe
they will never make all of their financial transactions digitally.

Why are they reluctant to move completely into the digital realm? Nearly
80 percent of consumers fear bad customer service from banks that “go
completely digital.” That could explain why 86 percent plan to bank in
physical branches over the next five years. Further emphasizing the
desire for personal interaction, 8 out of 10 Americans prefer working
with a professional banker instead of a virtual one to resolve issues.

“Consumers are challenging the industry to meet them where they are, and
that requires a mastery of the delicate balance between convenience,
security, and personalized engagement,” said Dominic Venturo, chief
innovation officer at U.S. Bank, and innovation coach. “That is why we
don’t innovate for the sake of innovation; our products are developed
with the sole intention of fulfilling a customer need. We know that
consumers are not looking for technology to replace bankers, but to add
convenience and security.”

Boomers’ Surprising High-Tech Appetite

When asked what technology they were most excited to try, millennials
said they want to use 3-D printers in order to print debit or credit
cards at home. Gen X and baby boomers are most excited to try retina
scanners to sign for purchases.

Contrary to today’s headlines, in some instances, older generations are
even more receptive to new technology than millennials, who are
traditionally thought of as early adopters. Two out of 5 (41 percent) of
respondents who are 65 years or older say they would sign for purchases
with an eye scan, compared to just 22 percent of those between the ages
of 18 and 24. Furthermore, those in the 65+ age group (24 percent) were
almost twice as likely to try a biochip implant for making payments and
all banking transactions as all other age groups.

Additional Survey Findings

The survey also offers insights into consumer behavior across
geographies and gender. A sampling includes:

  • Going paperless: West coast (21 percent) versus east coast (15
    percent) have never written a check.
  • Going completely digital: Female (69 percent) versus male (55
    percent) will never make all transactions digitally.
  • Trust in Bankers: Millennials (19 percent) versus boomers (10
    percent) bank at branches because they have a relationship with a
    banker they trust.

Conducted in October 2015, the U.S. Bank survey polled more than 1,000
adults ages 18 and older in the United States to better understand
consumer attitudes and behaviors toward emerging banking technologies
and compares differences across gender, geography, and generation.

Minneapolis-based U.S. Bancorp (“USB”), with $416 billion in assets as
of September 30, 2015, is the parent company of U.S. Bank National
Association, the fifth largest commercial bank in the United States. The
Company operates 3,151 banking offices in 25 states and 5,001 ATMs and
provides a comprehensive line of banking, investment, mortgage, trust
and payment services products to consumers, businesses and institutions.
Visit U.S. Bancorp on the web at www.usbank.com.

U.S. Bank’s 2015 People vs. Technology Banking Outlook Methodology

The U.S. Bank survey was by conducted by Wakefield Research among a
national represented group of U.S. consumers ages 18 and older, between
Oct. 16 and Oct. 22, 2015, using an email invitation and online survey.
The survey breaks out results by geography, gender and age demographics.
The sample size is 1,003 and has a margin of error of +/- 3.1 percent.

Contacts

U.S. Bank
Media:
Dana E. Ripley, 612-303-3167