Self-Service Banking: Delivering Better Service at Lower Cost

Self-service is no longer a convenience. It’s the default mode of interaction in today’s daily life. People rely on digital channels to order food, check in for a flight, book appointments, pay bills, and even manage their health. The widespread adoption of self-service banking is also well underway. Tasks like checking an account balance or transferring funds, once reserved for in-person visits, are now handled almost entirely online. In fact, a recent survey shows that 45% of Millennials and Gen Zers, the largest segment of today’s consumers, use exclusively digital banking to manage their financial matters.

As technology advances, self-service options become increasingly convenient, giving customers greater control over their finances. But it’s not just clients who benefit. Adopting these solutions is also advantageous for banks, offering benefits such as reduced operational costs, optimized branch networks, and improved efficiency.

In this article, we’ll explore the key banking self-service channels and the capabilities they offer. Leveraging Neontri’s expertise in banking software development, we’ll also explain why investing in this technology is a smart move for financial institutions aiming to stay relevant in today’s digital landscape.

Key takeaways:

• Self-service banking lets customers manage their finances without visiting a physical branch. This can be done through web-based digital banking platforms, mobile apps, or interactive kiosks. 
• More customers now prefer digital banking over in-person services. About 55% rely on mobile apps, and 22% use web portals to manage routine financial tasks, while only 8% still visit a branch.
• By shifting more services to digital channels, banks can significantly reduce costs, optimize branch networks, boost operational efficiency, and attract more customers—all of which directly contribute to long-term profitability.

Self-service banking: Key features and main channels 

Self-service in banking isn’t new—ATMs have been around for decades. But what was once a simple way to withdraw cash has evolved into a whole ecosystem of digital tools. Today, individuals and organizations can manage nearly all money-related routine tasks without the assistance of bank employees. 

Let’s look at the main channels that make this experience possible.

Online banking platforms

Online banking platforms allow users to access financial services through web applications. Basically, they function as a virtual bank branch with no closing hours or waiting lines. Clients can manage their accounts, transfer money, and resolve issues directly from the web interface. 

Today, web platforms are the baseline for self-service banking. Banks that don’t offer them have little chance of attracting new customers or staying competitive. According to the 2024 ABA Survey, 22% of US banking customers used web-based platforms as their primary way to handle financial tasks. To compare, only 8% of customers preferred branch visits. 

Here are some of the most common self-service features found in online digital banking platforms for individual users: 

Businesses and organizations actively use online banking to simplify financial operations and cut down on administrative tasks. Below are some examples of self-service functionality banks offer to this category of clients through their web platforms. 

Mobile banking apps

Mobile apps take the convenience of digital banking to a whole new level. They provide users with instant access to their finances, anytime, anywhere, enabling them to complete transactions as easily as sending a text message to a friend.

While financial institutions usually view mobile banking as an extension of their web-based platforms, customers often see it as a go-to option. According to the 2024 ABA Survey, 55% of US consumers use mobile apps as their primary way to manage bank accounts. And it’s easy to see why: unlike computers, our phones travel everywhere with us, making it possible to handle money matters literally on the go.

According to Accenture, users interact with their bank via a mobile app an average of 152 times per year, making it the most preferred digital channel. It also leads in user satisfaction, with a 60% satisfaction rate.

Most self-service features found on web-based digital banking platforms are also available in mobile apps. However, mobile banking often offers additional capabilities tailored for smartphones.

Self-service kiosks

Self-service kiosks are commonly found in bank branches and public spaces like retail locations. They allow customers to complete routine banking tasks through a user-friendly touchscreen interface.

The main advantage of interactive kiosks is their 24/7 accessibility, which lets users manage basic financial needs outside regular banking hours. Also, unlike web or mobile banking platforms, kiosks typically don’t require users to create an account to get started. However, their capabilities are generally more limited compared to these self-service options.

While interactive self-service kiosks don’t offer the full range of banking services and are location-dependent, banks are increasingly adopting them. By streamlining basic operations, these kiosks free up bank employees for more complex customer requests. The global banking self-service kiosk market was estimated at $6.76 billion in 2024, with continued growth expected in the next six years.

Interactive voice response systems

Interactive voice response (IVR) systems are automated tools that allow customers to access banking services through simple voice commands or keypad input. Acting as a first line of support, they typically handle simple information inquiries, reducing the need for live agents at call centers.

Although IVR is considered a more traditional self-service option, it has evolved with the integration of artificial intelligence (AI). AI-powered IVR systems can understand natural language, allowing customers to speak naturally (e.g., “I want to check my balance”) instead of following rigid menu prompts.

Advantages of self-service banking

When it comes to self-service in banking, the most obvious benefits are customer-focused: greater convenience, fewer trips to the branch, shorter wait times, and more control over finances. However, financial institutions can also expect strong returns from investing in self-service channels.

Branch network optimization

When more customers handle routine tasks through apps and websites, the need for in-person visits to financial institutions naturally declines. Thus, by introducing digital channels and shifting more services to them, banks can reduce their reliance on branches and potentially close underused locations.

TSB Bank in the UK closed several branches after discovering that 95% of transactions occurred outside physical locations. These transactions were mainly carried out via mobile, online, or phone channels—preferred methods for the bank’s 2.5 million users.

Self-service banking also enables banks to utilize their staff more effectively. Instead of assisting with routine tasks like utility payments, employees can focus on high-value services such as financial consulting, loan processing, or building stronger client relationships, which is especially critical for B2B banks.

This evolution toward remote accessibility is a key driver of digital transformation across corporate, retail, and consumer banking, enabling a strategic shift in how institutions manage internal resources.

Cost savings

Face-to-face interactions at a bank branch are much more expensive than digital ones since branches need physical space, utilities, and staff to handle even the simplest requests. The more financial tasks customers can handle on their own through digital channels, the more operational expenses banks can expect to cut.   

Additional cost savings come from a reduction in human error. Self-service transactions are automated and standardized, which minimizes the risk of data entry mistakes or miscommunication between staff and customers.

Scalable support

Emergencies can severely disrupt customer support in the banking industry. For example, during the COVID-19 pandemic, branch closures and a surge in inquiries about relief programs led to average phone wait times increasing from 40 seconds to over three hours.

Traditionally, the solution would be to hire more call center staff. But this approach takes time and increases labor costs. Self-service options, however, enable banks to scale support efficiently without the need to hire additional personnel. According to McKinsey, 70-80% of customer calls can be handled by automated systems.

Banks can also use digital channels, such as mobile app notifications, to proactively share information and address common concerns during crises, reducing the volume of incoming calls.

Customer satisfaction

Self-service banking enhances the customer experience by offering round-the-clock, easy access to services, even outside regular working hours. This accessibility improves how customers perceive their financial institution. For instance, one Latin American bank saw a 20% increase in customer satisfaction after introducing digital channels.

This, in turn, strengthens customer retention. McKinsey has found that satisfied clients are six times more likely to say they’ll stick with their bank. But it doesn’t stop there—the self-service banking convenience also helps attract new audiences. 81% of millennials and nearly as many Gen Zers say that digital banking is central to their choice of a financial service provider. 

Operational efficiency

Digital self-service systems are designed to handle thousands of transactions simultaneously, 24/7. This high level of scalability ensures that all requests, whether it’s paying bills for individual customers or large batch transfers for businesses, are processed instantly, without delays or bottlenecks. 

For banks, this translates into greater operational efficiency. By reducing reliance on manual processes and staff intervention, they can serve more customers in less time, without expanding their team or infrastructure.

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Competitive advantage

Self-service banking offers a competitive edge as it improves the customer experience for basic financial tasks and enables value-added services powered by data and AI, features that many competitors have yet to provide.

For example, Cleo, a UK-based fintech company, has attracted 6 million users with its AI-powered assistant. It helps users analyze spending habits and build personalized money management strategies. Traditional banks have access to similar data and are well-positioned to offer equally compelling tools to win over younger, tech-savvy customers eager to improve their financial skills. 

Key trends in self-service banking

Self-service banking solutions have been around for years, but they continue to evolve. Digital innovation unlocks new capabilities, and with them comes a rise in customer expectations. At the same time, banks are under constant pressure to improve efficiency, which drives them to look for ways to expand their self-service options.

Smart virtual assistants

Chatbots have long been a familiar feature in mobile banking apps and web portals, but they were once limited to predefined menus and basic, rule-based tasks. That changed with the advent of generative AI, which has transformed basic chatbots into advanced virtual assistants.

These assistants go beyond recognizing keywords. They understand context and user intent and can handle complex queries written in natural, free-form language. For example, instead of navigating a menu, a user can simply type, “Can you show me my last five card transactions?”, and the assistant will deliver the relevant info. However, smart virtual assistants go beyond answering questions to offer more advanced features, such as providing budgeting tips or guiding users through digital banking tasks. 

According to Statista, in 2024, 52% of financial institutions were using generative AI, mainly for virtual assistants, a 12% increase from 2023. This trend is clearly becoming the industry standard.

Probably the most famous example is Erica, an AI assistant created by the Bank of America. It’s used two million times every day. 

Robo-advisors

Robo-advisors offer automated, algorithm-based financial planning and investment management services. Many banks now integrate this technology into their digital banking platforms or mobile apps to enhance customer service and engagement. 

During onboarding, users answer questions about their financial goals, risk tolerance, and investment timeline. Based on these responses, the system suggests a personalized investment portfolio.

One example is US Bank’s Automated Investor, which uses predefined rules to build and automatically rebalance portfolios as market conditions change.

Personalization

Banks increasingly use data analytics and AI to deliver personalized experiences within their self-service channels. By analyzing customer behavior, personalized banking solutions can offer tailored financial advice, product recommendations, alerts, budgeting strategies, and more.

A Mastercard survey found that 86% of financial institutions consider personalization a top priority. This perfectly aligns with customer expectations, as 72% of consumers say that personalization influences their choice of bank. 

A great example is Revolut. While it’s not a traditional financial institution, but a neobank, it sets the standard for the entire industry. Recently, Revolut introduced an in-app AI assistant designed to adapt to customers’ individual needs and help them build smarter money habits.

Digital onboarding and biometric authentication

Through digital onboarding, customers can establish a relationship with a bank—open an account, verify their identity, and access services—without ever visiting a branch. This has become possible largely due to advanced verification technologies, including biometric identification. Customers can simply scan a government-issued ID and take a selfie to confirm their identity. E-signatures are then used to sign required legal forms and agreements online.

Additionally, to ensure secure and easy access to digital banking, especially through mobile apps, many banks use biometric authentication. It allows customers to log in or even authorize transactions via fingerprint or facial recognition.

JPMorgan Chase, for example, is preparing to launch a biometric checkout service that uses facial data collected during onboarding to enable seamless payments at participating merchants.

Delivering cutting-edge mobile banking solutions with Neontri

At Neontri, we deliver advanced self-service solutions tailored to the needs of both retail and corporate clients. With a strong track record in building robust mobile applications for leading banks, we empower users with secure, intuitive, and feature-rich digital experiences. Our solutions are designed to boost customer engagement, reduce operational costs, and provide seamless access to essential services anytime, anywhere. 

One such example is our cooperation with PKO Bank Polski, where we played a key role in developing the IKO mobile app for retail customers, which has become a cornerstone of the bank’s digital transformation efforts. Launched over a decade ago, it has continuously evolved to meet changing customer needs. Today, it offers a variety of features, including online currency exchange, personal finance and credit management tools, QR code transactions, and AI-powered voice assistance.

Whether you need to enhance your retail banking offer or streamline corporate financial operations, Neontri combines innovation and expertise to create apps that meet the highest standards of performance and reliability.

Ready to dive deeper? Explore the details now: Digital Transformation Examples in Banking: Success Stories From Industry Leaders

Final thoughts

Today, nearly every financial institution offers some form of self-service banking, but simply having the tools isn’t enough. The key is to build self-service banking solutions that go beyond basic functionality—solutions that are advanced, intuitive, and genuinely helpful. 

Take the first step toward smarter banking! Contact us to build solutions that make a real impact.