Digital banking has become the default for routine financial tasks, but middle-income Americans still want people involved when decisions become complicated. New research from Santander US finds that consumers increasingly expect a hybrid financial-services model combining digital convenience with physical branches, while vehicle access remains closely tied to employment and economic mobility.

Santander Survey Highlights the Limits of Digital-Only Banking

The financial-services industry has spent years moving routine transactions online. Checking balances, transferring money and paying bills can now be completed without speaking to a banker.

But Santander US’s latest research suggests that digitization has not eliminated the value of human assistance.

The bank’s Q2 2026 Paths to Financial Prosperity survey of middle-income Americans found that 89% want to manage most banking tasks digitally while still having access to a physical branch with people who can help when needed.

The finding points to an increasingly important distinction in banking technology: consumers may want digital-first banking, but that does not necessarily mean digital-only banking.

For complex financial decisions, customers continue to place value on human guidance.

That creates a challenge for banks investing heavily in mobile apps, AI assistants and automated service. The objective is not simply to eliminate physical interactions. It is to determine where technology works best and where human expertise remains part of the product.

The branch is becoming an escalation layer

For everyday banking, digital channels have clear advantages.

Customers can transfer funds, review transactions and manage accounts at any time. But Santander’s survey found that consumers prefer in-person banking for resolving complicated issues, receiving personalized guidance and discussing major financial decisions.

That effectively turns the branch into an escalation layer for digital banking.

The customer can handle routine activity through an app and move to a human when the situation requires judgment, explanation or reassurance.

This model resembles the way sophisticated enterprise software increasingly works. Automation handles predictable tasks, while humans step in for exceptions.

For banks, the implication is that branches may need to be redesigned rather than simply maintained.

Instead of functioning primarily as transaction locations, branches can become advisory environments focused on lending, financial planning and other high-value interactions.

The survey also found that 86% of respondents would have greater confidence in a digital banking provider backed by a financially stable bank, while 83% said they would have greater confidence if the provider also had physical branches.

That suggests physical presence still contributes to digital trust.

Banking technology has a credibility problem, not just a convenience problem

The findings are particularly relevant as financial institutions introduce AI and increasingly automated customer service.

A chatbot can answer a question quickly. An AI system can potentially categorize spending or provide personalized financial suggestions. But customers may still want to know that a human can intervene when the stakes are high.

That distinction is important as banks such as JPMorgan Chase, Bank of America, Wells Fargo and Santander invest in digital experiences while maintaining extensive physical networks.

Fintech companies have demonstrated that consumers will adopt branchless financial products. But traditional banks retain an asset that many digital-only providers cannot easily reproduce: an established physical presence combined with regulated financial infrastructure.

The opportunity is to connect those two worlds.

A customer might discover a financial product online, use an AI-powered tool to understand the options and then visit a branch to discuss the decision with a specialist.

That is not a failure of digital transformation. It may be the model that makes digital transformation work.

Cars remain part of the financial-services equation

Santander’s research also highlights the connection between banking, vehicle finance and economic mobility.

More than three-quarters of respondents said vehicle access is necessary for getting to work, while 76% said it directly affects the number of jobs available to them.

That helps explain why vehicle affordability remains a significant concern for middle-income households.

More than half of respondents said they were driving to work more often than a year earlier, an increase of eight percentage points from the previous quarter. At the same time, affordability is influencing purchasing decisions.

Eighty-four percent of prospective vehicle buyers said they would consider purchasing a used vehicle, while nearly three-quarters of recent buyers said they compromised on vehicle features or add-ons to stay within budget.

This is where financial technology intersects with physical commerce.

Consumers may use online search, comparison tools and AI to research a vehicle, but Santander found that roughly two-thirds of prospective buyers remain more comfortable shopping for and purchasing vehicles through dealerships where they can see and test-drive cars.

The result is another hybrid model: digital tools for discovery and research, combined with human interaction for high-value decisions.

AI is becoming a practical financial tool

The survey also suggests that consumers are moving beyond experimenting with AI and beginning to use it for practical financial purposes.

Respondents reported using AI most often to help save money or reduce expenses.

That is a relatively low-risk entry point for financial AI.

Rather than asking an AI system to make an investment decision or choose a complex financial product, consumers can use it to identify potential savings, compare costs or organize information.

For financial institutions, these use cases could become an important bridge toward broader AI adoption.

The challenge will be maintaining accuracy and trust. Financial guidance is highly sensitive to individual circumstances, and an automated recommendation can become problematic if customers misunderstand its limitations.

Banks therefore have an opportunity to position AI as a financial co-pilot rather than an autonomous decision-maker.

Inflation is changing behavior without eliminating optimism

Despite continued concern about rising costs, Santander’s survey found relatively strong financial confidence among middle-income households.

Seventy-six percent said they were on the right track toward financial prosperity, while 83% believed they would find a way to manage rising costs.

But resilience is coming with tradeoffs.

Ninety-two percent said they had taken some action in response to inflation. Nearly half reduced retail spending, while 44% cut entertainment or travel spending.

Tax refunds also played a role in household finances. Two-thirds of respondents said they received a refund, with many using the money for savings or everyday expenses.

For banks and financial technology providers, these behaviors create demand for tools that help customers understand where money is going and make adjustments before financial pressure becomes acute.

What banks should take from the research

Santander’s findings suggest that the future of retail banking will not be defined by a simple contest between branches and apps.

Instead, the strongest banking models may combine digital speed with human expertise.

Routine transactions can remain automated. AI can help customers analyze their finances. Mobile applications can provide constant access.

But when a customer is deciding whether to borrow, purchase a vehicle, restructure finances or resolve a complex problem, human support can remain a competitive advantage.

That has implications for bank technology investments.

The objective should be to connect digital and physical channels so customers do not have to start over when moving between them.

For financial institutions, that means unified customer data, consistent service histories, integrated appointment systems and digital tools that allow branch employees to pick up where an online interaction ended.

The branch of the future may therefore be less about transactions and more about context.

And in an industry increasingly defined by automation, that human layer could become one of the most valuable technologies a bank offers.

Market Landscape

Santander’s research reflects several trends shaping retail financial technology:

• Hybrid banking is gaining importance: Customers increasingly want digital convenience for routine activities while retaining access to human support for complex decisions.
• Physical presence still influences trust: The survey’s confidence findings suggest established institutions can use branch networks as a differentiator in an increasingly digital market.
• AI is moving into household finance: Consumers are beginning with practical use cases such as identifying savings and reducing expenses.
• Vehicle finance remains economically important: Transportation access is closely linked to employment for many middle-income households, sustaining demand for auto financing despite affordability pressures.
• Digital and physical commerce are converging: Consumers may use AI and online tools to research purchases but still prefer human interaction for high-value decisions.

The broader lesson for banks is that digital transformation is becoming an omnichannel architecture challenge. The winning experience may not be the one with the fewest human interactions, but the one that makes moving between automated and human assistance seamless.

Top Insights

• Santander’s survey finds 89% of middle-income consumers want digital banking for routine tasks while retaining branch access for complex financial decisions.
• Physical branches continue to influence digital trust, with respondents showing greater confidence in online banking backed by established financial institutions.
• Vehicle access remains closely tied to employment, while affordability pressures are pushing buyers toward used vehicles and fewer optional features.
• Consumers are beginning to use AI for practical financial tasks, particularly finding ways to save money and reduce everyday expenses.
• Banks face a strategic choice: automate routine interactions while preserving human expertise for high-stakes decisions where trust and context matter.

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