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Are bank branches becoming a thing of the past?

  • August 12 2020
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Borrow

Are bank branches becoming a thing of the past?

By Grace Ormsby
August 12 2020

Banking may never be the same post-pandemic, with a new survey showing Australians have made some pretty drastic changes to the way they use and move money.

Are bank branches becoming a thing of the past

Are bank branches becoming a thing of the past?

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  • August 12 2020
  • Share

Banking may never be the same post-pandemic, with a new survey showing Australians have made some pretty drastic changes to the way they use and move money.

Are bank branches becoming a thing of the past

To measure just how much banking and payment habits have changed, JD Power conducted a survey of nearly 2,000 adults, which found a growing number of Australians are “self-sufficient” when it comes to banking and payments, as well as being more receptive to digital channels.

More than one-quarter (27 per cent) of respondents indicated in the survey that they would use bank branches less often – even when in-person interactions are safe.

A previous survey that asked the same question two months prior had seen just one-fifth of respondents answer the same way.

For JD Power Australia’s head of banking and payments intelligence, Bronwyn Gill, the data shows that “Australians are increasingly receptive to mobile and online banking compared with at the start of the pandemic”.

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The move away from physical bank branches makes sense – almost one-third of respondents revealed they are avoiding cash at the present time due to the fear it may spread the virus.

Another 24 per cent also stated they are using ATMs less often to avoid contamination.

“As social distancing continues, there has been an increase in first-time mobile and online users, and greater frequency of use,” Ms Gill observed.

So, how are Australians paying for goods and services?

Debit cards are the most favoured payment method at the present time, with 58 per cent of respondents reporting that they had used such a card for in-store purchases in the last week.

Credit cards are coming in second place – 40 per cent of respondents have also pulled out this type of plastic.

Newer payment methods are also proving more popular – 21 per cent of those surveyed had used a mobile phone or smartwatch for in-store purchases, while 16 per cent had paid for a transaction using a buy now, pay later service.

Surprisingly, and despite a number of stores discouraging or refusing cash payments to protect customers and stuff from COVID-19, a number of Australians are still using loose change – 36 per cent of the survey participants revealed they had paid for an item using physical tender in the past week.

Are bank branches becoming a thing of the past?
Are bank branches becoming a thing of the past
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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