Mumbai: Indian bank branches continue to draw their heaviest footfall from entrepreneurs, rural customers and affluent clients, while younger, digital-native users remain the least likely to walk in, according to a report by EY. The report also noted that 55% of customers want better digital support across apps, websites and chatbots.
Key Findings on Branch Usage
The report finds that middle-age entrepreneurs are the most frequent branch users, with 68% visiting for cash transactions and 65% for account-related services. This reflects the operational needs of business owners who rely on physical banking for liquidity and servicing.
The rural core is another key driver of branch traffic, with 56% visiting for deposits and withdrawals. This points to the continued importance of cash-led transactions in semi-urban and rural markets.
Mass-affluent urbanites also show strong branch dependence, with 52% relying heavily on in-person banking, typically for more complex, advisory-led and relationship-driven services.
Other Customer Segments
Other customer groups also contribute to steady branch usage. Around 45% of empowered urban women report frequent visits, often for service resolution and financial management needs. Meanwhile, 34% of golden transitioners in urban areas use branches, preferring human interaction for planning and account-related clarity.
Rising professionals sit in the middle, with 37% in urban areas and 33% in rural areas visiting branches. This indicates a gradual shift toward digital channels while still depending on physical touchpoints for certain services.
Digital-Native Users Stay Away
In contrast, aspiring strivers, comprising students aged 18–24, are the least likely to visit branches, with only 9% doing so frequently. Their interaction is largely limited to mandatory requirements such as KYC updates and documentation, as this cohort remains strongly digital-first and price-sensitive.
Implications for Banks
The findings point to a clear divide in customer behaviour. Those most likely to visit branches tend to have higher transaction complexity, greater cash dependence or a preference for human engagement. Those least likely are younger, digitally fluent and driven by convenience.
Even as mobile banking adoption rises, EY said the demand for stronger digital support alongside continued relevance of branches for high-value and trust-led interactions will shape how banks design their customer experience strategies.
