(Wisconsin State Journal, The (KRT) Via Thomson Dialog NewsEdge)May 10--Matthew Delaney does a fair amount of his banking online. But when he needed help reworking his individual retirement account as he begins his own small business, he headed to an Associated Bank branch.

On Tuesday, he went through all the steps with a personal banker -- deciding on acceptable risk, talking over savings options, signing papers. The usual stuff.

Routine as it might be in the banking industry, it's an interaction Delaney, 28, says he wouldn't attempt unless he was across a desk from a banker.

"You can't ask a computer a question," he said. "You can e- mail, but that takes time. If you have a question, it can be answered right away at the bank."

It's people like Delaney that banks and credit unions are counting on, especially in light of the building boom that has seen 47 financial branches open in Dane County since 2003.

The boom continues even as industry surveys indicate that remote banking is bigger than ever. (Remote services include online access to accounts, automatic teller machines and direct deposits.)

At first glance, the two trends might seem at odds.

Banking from afar is now "mainstream," according to an April survey of online habits. Also, members of the tech- savvy younger generation -- including Delaney -- are entering their strong earning years.

But rather than making brick-and-mortar branches obsolete, the advances make the industry more certain than ever that they are integral to long- term success.

The habits of Generation Y are key, said Brett Thompson, president of the Wisconsin Credit Union League. Of course, young people are naturally inclined to rely more on high-tech banking.

"Nevertheless, there's a fair amount of research that they also have a strong need for personal contact," Thompson said. "Although they may do a lot of research and investigation online, ultimately, they're a group not unlike other groups. They need to have that personal contact."

The building boom, while driven by the industry's need to boost revenue from more non- traditional sources, also marks a 180-degree turnaround from the 1990s, when some banks thought the Internet would trigger a total overhaul.

It never happened. Most customers never abandoned branches, even young people who were thought to be the first completely wired bank customers.

Steve Schultz, 22, a graduating UW-Madison senior, splits his transactions with Chase Bank about half-and-half between online and in-person visits.

For example, Schultz, a finance student himself, still cashes checks in person. But he says it's not ideal.

"Our generation currently, we want things -- we want them now," Schultz said. "Having to go to a bank and opening a credit or checking account, making a deposit, that's just a pain."

Agreed, says David Stein, the president of Associated's region that includes Madison. The highly competitive market means customer convenience is a priority -- and that convenience includes a vibrant online presence. But it also includes branches and ATMs.

"People value those alternative ways to access their bank," Stein said. "Most people will not utilize those access points exclusively. They view those as a supplement."

Consumer behavior has apparently settled into a consistent pattern of blending both remote and traditional banking, experts say, with some variation of Schultz's or Delaney's banking preferences taking hold across the market.

For example, four out of five new checking accounts at Associated include a debit card. But consumer studies still rank a nearby branch high among consumer needs.

"There's a trend toward slightly less of a desire or need for brick-and mortar," said Jim Hartlieb, regional president of Amcore Bank. "But there's always going to be the mortgage, the big purchases in your life. And you're always going to want to meet with a person and ask questions."

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Copyright 2006 Technology Marketing Corporation (TMC)