Digital banking channels vs traditional retail branches: Maltese student customer preferences

Abstract

This study investigates Maltese student customers’ preferences regarding digital banking channels and traditional retail branches, while also exploring how these preferences align with local banking professionals’ perceptions. Through a mixed-methods approach, data pertaining to students’ preferences was gathered from a survey distributed across students at the University of Malta whilst semi-structured interviews were held with banking officials from the core retail banks. The findings demonstrate the widespread adoption of digital banking, especially through mobile apps. These are mainly used for routine transactions due to their convenience, ease of use, and accessibility. The study also highlights the continued importance of physical branches for complex services such as loans and investments, where face-to-face interactions are valued. Despite the shift towards digitalisation, branches retain a significant role among younger cohorts especially for advisory services and trust-related concerns. The research contributes to understanding the evolving banking landscape in Malta and provides insights for local banks to adopt a balanced approach between digital and traditional channels to meet the needs of their student customers.