Do Millennials Really Want to Eliminate Banks?

NEW YORK (MainStreet) — While more Millennials are banking online, a majority still prefer to go inside a branch to make deposits and other tasks.

Branches are still key for many consumers with 53% of Millennials saying they still visit a branch because they feel it is more secure and seek in-person service, according to a recent TD Bank survey that also indicated Millenials are not entering a bank simply to use an ATM alone. The nationwide survey polled more than 2,000 Millennials (ages 18-34) about their banking behaviors and preferences.

"The results of our study prove that financial education is not only a key component of financial success, but also that millennials want more support with their personal finances," said Nandita Bakhshi, executive vice president of retail distribution and product of TD Bank, based in Cherry Hill, N.J. "Millennials need to feel empowered to reach out to their bank and have their questions answered so they become more confident about their financial futures."

The survey also found that 52% of Millennial respondents said they use in branch banking about the same amount as they did last year and 54% turn to branches to find out financial information compared to getting answers from friends, family or family advisors.

"The branch visits plus the increased mobile banking activity shows that they appreciate a bank that can offer them the tools they need to succeed, whether this is in a branch, online or through a mobile app," Bakhshi said.

Surveys by AlixPartners Mobile Financial Service and Fiserv are mirroring the trend found that a majority of Millennials are still using their branches. A study conducted during the fourth quarter of 2013 by AlixPartners, a New York-based business advisory firm, found that 80% of 18 to 34 year olds still visit branches.

Jason Fischbach, 24, who works at public relations agency in New York, goes into a branch to deposit money, because he does not trust the technology to be accurate yet.