Customer service is key

According to the survey:

* 65% would only take out a mortgage after speaking with someone face-to-face;

* 66% have their current account where they receive the best level of service compared with 30% who place their current accounts where they

earn the highest interest;

* 21% of respondents have moved bank in the last two years due to their dissatisfaction with the way they have been treated by their bank; and

* 53% said they would only place their savings in a bank with branches they could visit.

According to the survey, the existence and accessibility of branches, along with face-to-face interaction, remains a key consideration for customers. Further, customers place more importance on the level of service they receive than on the interest rate when choosing which bank to have their account with.

Neil Tomlinson, head of retail banking consulting at Deloitte, commented: "The importance of branches in the banking sector must not be underestimated. Branches remain the primary channel through which banks interact with many of their customers, and any businesses considering expanding their remit to include banking services will need to incorporate a branch network.

"Our research showed that 58% of customers would be more likely to open a current account at a bank with branches open in the evenings and on the weekend. Face-to-face contact is a key requirement, and particularly so for products such as mortgages - where customers are unwilling to compromise on face-to-face contact."

Ian Foottit, financial services strategy partner at Deloitte commented: "Fortunately for banks, our findings confirm that for some customers, and for some part of their overall deposits, it isn't all about the interest rate the banks offer.

"At a time when banking customers are more aware of their finances and are taking decisive action to source the best service, and with service-driven new entrants on the side-lines, banks need to ensure that they are meeting these demands if they are not to run the risk of just competing on price."