Younger customers visit bank branches more than older generations, according to new research from RSM UK. This contradicts the idea that digitally fluent users avoid physical banking. Source: independent.co.uk.
Younger Generations Visit Branches More Often
More than one in three Millennials and Gen Z customers visited a bank branch in the past month. That compares to only one in five Gen X and less than a quarter of Baby Boomers.
The data comes from a survey by Censuswide. It shows younger users still rely on in-person banking for practical tasks.
Why Do Younger People Visit Branches?
Cash transactions drive most branch visits. Paying in cash is the top reason. Withdrawing cash follows. Cheque payments are also common.
Fewer than one in ten visited for online banking help or to open a new account. This shows digital services aren’t the main reason for visits.
Many Younger Customers Struggle with Digital Tools
Among Gen Z respondents who visited a branch, 82 per cent said they tried to complete a task online or via app but failed. This points to gaps in digital banking tools.
Failures may come from technical issues, poor app design, or unclear instructions. The experience shows digital tools often don’t work well in real life.
Physical Branches Still Hold Value
Despite digital growth, physical branches remain relevant. Hugh Fairclough, head of financial services at RSM UK, said: ‘It would be easy to assume younger customers don’t use branches. Our research shows they do.’
He noted cash deposits and withdrawals remain the top reasons for visits. This shows face-to-face banking still serves a real need.
Still, the role of branches is changing. Banks like HSBC and Barclays are expanding networks. Others struggle to define which services need to be in person.
Government and Retail Push for Cash Acceptance
After a Google Cloud outage in October, retailers lost an average of £255 per hour. Around one in four had to turn customers away.
Ben Hunter Woollard, head of banking at the Post Office, said: ‘A payment outage can disrupt trading in seconds. Sales can be lost.’
He urged retailers to accept cash, especially as the government encourages households to keep emergency cash on hand.
Helen Dickinson, chief executive of the British Retail Consortium, said: ‘While businesses can choose payment methods, cash remains a viable option for choice and resilience.’
What This Means for Banking and Retail
Physical banking is not obsolete. For younger users, it’s a practical option when digital tools fail.
The government’s emergency cash guidance reinforces cash’s role in daily life. This has renewed interest in in-person banking.
Digital banking grows, but in-person services still meet real needs — especially during outages or emergencies.
More than 4 million UK residents now have accounts with no physical branches. This shows growing access gaps.
As digital systems remain vulnerable, physical branches — especially for cash — will remain important in the near term.
For consumers, a physical branch offers a safety net during tech failures. For banks, it highlights the need to serve real-world needs.
Further research is needed on how digital and physical services will coexist. But for now, cash and in-person banking still matter — especially in emergencies.
For more on government emergency preparedness, see UK Government Launches Emergency Preparedness Campaign for Households.
Sources & further reading
Featured image: original publisher image. Via original publisher. Image source
