A recent article in The Financial Brand observed that Millennials generally don’t open accounts with banks and credit unions online, because most financial institutions haven’t developed applications that are simple and intuitive (https://thefinancialbrand.com/75748/millennials-mobile-banking-online-digital-account-opening/?edigest).
This finding is consistent with the research we have done with consumers. While most banking customers love the convenience of online banking for nearly everything, they still want to go into the bank or credit union to open new accounts because they anticipate, based upon past experience, that they aren’t going to be able to fill out the application without getting help. So rather than start filling out an application for a new account online and getting stuck, people would rather go to the branch so someone can help them.
I can empathize with that feeling. I recently tried opening a new account for Market Street Research. The bank didn’t have the application online, so I asked the representative if she could email it to me. I was completely mystified by most of the application. I emailed the representative to clarify what was needed, and she sent me back the application with notes on it about what the bank was looking for, but she noted that she preferred to meet with customers to help them fill it out.
That really says everything you need to know about why many people don’t want to open bank accounts online. The danger for brick and mortar banks is that people increasingly want to do everything possible online—particularly Millennials. And banking has always been about convenience. So if online-only banks get online account openings right, and overcome current expectations that the experience will be poor, Millennials may see no reason to use brick and mortar banks and credit unions.