Proximity to a full-service branch may be becoming less essential to consumers, survey says.

• Position: MARKETING NEWS

PROXIMITY TO A FULL-SERVICE BRANCH MAY BE LESS IMPORTANT TO CUSTOMERS THAN IT WAS IN THE PAST. A study of 1,400 consumers done earlier this year by market research firm Chadwick Martin Bailey, Boston, says that proximity to a full-service bank is the first thing that consumers would be willing to give up if faced with fee hikes or service reductions.

Other notable findings from the study regarding bank location and convenience:

* The perceived importance of a physical bank branch doesn't match up with consumer banking behavior: Tellerless options, particularly mobile and online banking services, have reduced the need for branch visits. Sixty-seven percent of bank customers say that having a physical branch close by is very important, but even 41 percent of these customers visit fewer than five times per year.

* Banks don't have to be steps away to be seen as convenient: The "sweet spot" for branch convenience is relatively wide. Bank customers within ten miles of their bank branches say they are the most satisfied with branch convenience.

* The idea of a tellerless branch is confusing for some customers: Tellerless branches (where sales professionals are available to answer product and service questions in addition to automated services) were seen by customers as less desirable than closing their local branch altogether, this counter-intuitive finding suggests that the concept will require banks to fully explain the benefits of the...