Leading consultancy Kearney has released the latest data from its annual European Retail Banking Radar. The data reveals that for the first time ever, over half (52%) of all interactions that European customers have with their banks regarding new product purchases are on digital channels. In Romania, this percentage is even higher, at 57%.
Digital banking gains momentum
Digital channels feature prominently in the customer journey, with more than two-thirds (70%) of all interactions involving a digital channel either for pre-purchase research or the actual purchase.
Spurred initially by the COVID-19 pandemic, the adoption of digital channels for banking has made big strides in the last five years. 64% of Romanian consumers opened a savings account online – nearly double that of 2020 (38%), in line with the European average. When it comes to consumer loans, 40% of Romanian consumers chose the digital channel to apply for one (vs 30% in 2020).
This marks a shift from the past, where digital channels were mainly for research and purchases happened face-to-face. Kearney’s report reveals a more balanced split between physical and digital channels across Europe.
From branches to bytes
The number of physical bank branches in Europe has declined significantly, dropping by 43% in the last 15 years. In Romania they dropped from over 6,500 in 2008 to less than 3,500 in 2024.
That being said, human interaction via either branches or independent advisers remain essential for high-value, complex transactions across Europe. Customer interactions with independent advisers in Europe actually grew by 50% compared to only a year ago. In Romania, almost one third of consumers work with an independent advisor when it comes to investment products.
Roberto Freddi – European Head of Financial Services practice, comments:
“With regulation around digital financing continuing to evolve, banks must prioritise investments in advanced technologies, continuous employee development, and robust data management practices to remain a trusted partner in their customers’ financial journeys.
“While the value of face-to-face interactions remains crucial, building a powerful channel strategy will be essential to deliver seamless end-to-end digital sales. Customers expect the same level of service and information regardless of the channel they use, and our findings show that creating a cohesive customer experience will remain a key task to meeting this demand in the coming years.”
Please find a link to the full report here: Retail banking’s new reality: the digital shift and the future of branches | Kearney
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Methodology
The Retail Banking Radar is based on the segment reports of European banks and reflects actual figures as reported by individual institutions. Additionally, direct customer research is conducted on selected topics – this year, on channel use for banking products, customer loyalty, and the size of the threat from digital-only banks and fintechs – by surveying 500 respondents with representative demographic profile per country.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
