Banks facing tight budgets have been trying to cut costs in their expensive branch networks for several years now, and one way to do so is to urge customers to use the digital channels for daily transactions. A report released yesterday by Javelin Strategy and Research, called “Leveraging an Omnichannel Approach Financial Institutions Fight for $1.5 Billion in Mobile Banking Profits,” estimated that banks can save almost $50 a year for every customer that deposits one check each month through a mobile device rather than a branch.
That savings would total $1.5 billion a year for the entire industry, the study said.
Javelin said that branch visits have already dropped by 10% since 2010. But there is still room for more savings by limiting branch visits in favor of digital transactions, Mary Monahan, EVP and research director on mobile at Javelin, said in a statement.
Javelin estimated the cost difference between an in-branch check deposit and a mobile check deposit at $4.15 per deposit, leading to a savings of nearly $50 a year for each customer that moves one check deposit per month to the mobile channel.
The study, based on online surveys of more than 18,000 consumers, includes best practices for encouraging customers to move their daily transactions from the branch to the digital channels.