How Music and Scent Can Improve the Bank Branch Experience

<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >How Music and Scent Can Improve the Bank Branch Experience</span>

Music and scent can influence stress, mood and the experience of waiting. For Australian banks, sensory design could help create a calmer environment for customers facing difficult financial conversations.

A customer experiencing financial stress may spend days putting off a conversation with their bank.

They may be worried about missed repayments, suspected fraud, a declined application or a financial problem they do not know how to solve. Other customers arrive at a branch to administer an estate, navigate a separation, apply for a mortgage or make a decision that will affect their finances for years.

By the time they enter the branch, they may already feel anxious.

The bank cannot remove the financial issue that brought them there. It can influence the environment in which the conversation takes place.

Research into music, scent and waiting environments suggests that carefully managed sensory design can reduce anxiety, improve mood and change how people experience a service environment.

For banks looking to improve the branch customer experience, this is an area worth testing.

Why do customers feel anxious in bank branches?

Financial conversations carry emotional weight.

ASIC’s 2024 financial hardship research found that more than five million Australians had struggled to make loan or debt repayments during the previous 12 months.

Among people who experienced financial hardship:

73% reported stress or anxiety
56% lost sleep
41% experienced a decline in their physical health or appearance

Many customers were also reluctant to approach their lender.

51% identified anxiety and stress as a potential barrier to asking for help. 40% cited shame or embarrassment, and the same proportion cited a feeling of failure.

Only one in five had ever sought financial hardship assistance.

The Australian Institute of Health and Welfare reports that almost 55% of financially stressed Australians experienced high or very high psychological distress in 2023. That was approximately 2.6 times the rate among people who were not under financial stress.

Not every branch customer is experiencing hardship. But many are dealing with uncertainty, vulnerability or a decision carrying significant financial consequences.

Their emotional state becomes part of the bank branch customer experience.

The role of the Australian bank branch has changed

Most routine banking now happens online.

According to the Australian Banking Association, 99.3% of interactions between customers and financial institutions occur through digital channels. In-person branch interactions have fallen by 51% since 2019.

Customers no longer need to visit a branch to check a balance, transfer money, pay a bill or manage a card.

The remaining visits are more likely to involve advice, problem-solving or personal assistance.

Accenture’s banking research found that 63% of customers turn to bank branches to resolve specific and complicated problems. Another 67% valued having a branch nearby because its presence conveyed stability and availability.

This changes what the physical branch needs to deliver.

A modern bank branch must support conversations that require time, privacy, judgement and reassurance. The customer experience cannot be assessed only through transaction volumes and processing times.

Customer confidence, perceived privacy, willingness to seek help and the quality of the conversation also matter.

How the branch environment can increase customer stress

Customers begin assessing a branch before they speak to an employee.

They notice whether the entrance is easy to navigate, whether anyone acknowledges them and whether it is clear where they should wait. They also notice how exposed they feel and whether they can hear other customers’ conversations.

A busy branch without a controlled sound environment is rarely quiet. Customers hear phones, keyboards, footsteps and fragments of conversations about loans, account problems and personal finances.

For someone preparing to disclose a financial problem, that environment may increase their sense of exposure.

Uncertainty can add to the pressure. If customers do not know how long they will be waiting or what will happen next, the wait may feel longer and more frustrating.

Branch layout, service design, staff behaviour and queue management all affect this experience. Music and scent can provide another layer of support.

Can music reduce anxiety in bank branches?

Research has repeatedly linked music with lower levels of stress.

A 2020 meta-analysis published in Health Psychology Review examined 104 randomised controlled trials involving almost 10,000 participants. The researchers found that music interventions had a significant effect on psychological and physiological measures of stress.

A separate literature review focused on music in waiting rooms. It found evidence that background music could create a more positive waiting experience and may help reduce anxiety, although the methods and results varied between studies.

There is also evidence from a bank environment.

In a field study conducted in a city-centre bank, researchers played classical music, easy-listening music and no music over three weeks. Customers’ perceptions of the banking hall changed according to the music being played.

Their evaluation of the environment was positively associated with their evaluation of the music.

The study did not identify one genre that will work for every bank. It demonstrated that background music influences how customers perceive a banking environment.

What kind of music works in a bank?

Music for bank branches should support the intended atmosphere without demanding the customer’s attention.

In branches where people may be waiting for advice or preparing for a difficult conversation, suitable music may have:

low to moderate energy
a controlled and consistent volume
limited use of distracting lyrics
enough variation for employees who hear it throughout the day
a sound that fits the bank’s brand and customer base

The wrong music can introduce more stress.

Excessive volume, fast tempos, repetitive playlists or songs that conflict with the bank’s positioning may irritate customers and employees. Music chosen by individual staff members can also create an inconsistent experience across the branch network.

A multi-site banking environment requires commercially licensed music, central control and reliable delivery. Banks should be able to manage playlists, schedules and volume standards across locations while allowing appropriate variation for different branch formats.

Can music improve privacy in a bank branch?

Background music can reduce the discomfort of an otherwise silent room and provide a degree of acoustic cover.

It should not be treated as a complete privacy solution.

Speech privacy also depends on branch layout, the distance between customers, partitions, sound-absorbing materials and, where required, engineered sound masking.

Music works best as one part of a wider acoustic strategy. Its role is to make the room feel less exposed while supporting the atmosphere the bank wants to create.

Can scent reduce customer anxiety?

Research conducted in healthcare waiting rooms provides useful evidence about scent and anxiety.

A controlled study involving 200 dental patients found that ambient orange and lavender scents were associated with lower anxiety and improved mood while people waited for treatment.

A separate cluster-randomised controlled trial involving 340 dental patients found that those exposed to lavender reported significantly lower current anxiety than the control group.

The lavender scent did not change how participants felt about future dental visits. It reduced the anxiety they were experiencing while they waited.

That distinction is relevant to bank branch design.

Scent cannot remove debt, resolve fraud or make a financial decision less significant. It may help reduce some of the immediate tension surrounding the conversation.

Is scent marketing appropriate for banks?

Scent marketing in banks requires more care than scenting a retail or hospitality environment.

Banks serve a broad range of customers, including people with asthma, allergies, sensory sensitivities and other health considerations. Ventilation, branch size and customer dwell time also affect how a fragrance is experienced.

Any bank scent strategy should include:

low-intensity delivery
careful testing before wider deployment
consideration of asthma, allergies and neurodiversity
clear controls over fragrance concentration
customer and employee feedback
a process for reporting adverse reactions
the ability to turn the scent off immediately

Customers should not walk into a branch and consciously notice a strong fragrance. The aim is to support the environment without becoming a distraction.

Should banks use music and scent together?

More sensory input does not automatically create a better bank branch customer experience.

A field experiment conducted in a medical waiting room tested instrumental music and lavender scent separately and together.

Music reduced anxiety when used alone. Scent also reduced anxiety when used alone. When they were combined, the same reduction did not occur.

The researchers suggested that too many environmental stimuli could increase arousal and work against the intended effect.

Other research has found that music and scent can work well together when they feel congruent. When the elements conflict, customers may evaluate the environment less positively.

For banks, the lesson is clear: sensory design needs to be coordinated.

Music, scent, lighting, digital displays, signage and branch messaging should support the same atmosphere. A calm soundtrack will achieve little if the scent is overpowering, promotional content is flashing across screens and customers are waiting in an exposed queue.

How sensory design can support commercial banking outcomes

The commercial case for music and scent does not rest on whether customers say they enjoyed a playlist or liked a fragrance.

Banks need to determine whether sensory design changes outcomes that affect branch performance.

A calmer bank branch customer experience could support:

Earlier hardship engagement

If a branch feels less intimidating, customers may be more willing to ask for help before their financial position deteriorates further.

Greater customer satisfaction

Research shows that music and scent can influence how people evaluate a service environment and experience a wait.

Lower queue abandonment

A more comfortable waiting environment may reduce frustration and the likelihood that customers leave before receiving service.

Better conversations

Customers who feel calmer may find it easier to explain their circumstances, process information and consider the options presented to them.

Stronger perceptions of privacy

Appropriate sound can reduce the discomfort of silence and support a wider acoustic privacy strategy.

A better employee environment

Branch employees spend far longer in the environment than customers. A well-managed sensory environment may support their comfort and ability to communicate throughout the day.

These outcomes should be tested rather than assumed.

How Australian banks could test sensory design

An Australian bank could begin with a controlled pilot across a small group of comparable branches.

The pilot could test music, scent, a carefully managed combination and an unchanged control environment. Branches would need to be matched for customer volume, wait times, staffing levels and common appointment types.

The bank could measure:

reported customer stress on arrival and departure
actual and perceived waiting time
branch satisfaction
comfort and perceived privacy
queue abandonment
customer complaints
appointment completion
employee comfort and concentration

The results would show whether sensory changes produce a measurable benefit, which conditions work best and where music or scent should not be used.

It would also give the bank evidence from its own customers, employees and branch network.

Sensory design should support service, not disguise its problems

Music and scent cannot compensate for poor customer service, excessive waits or a lack of privacy.

ASIC’s review of ten large home lenders found that lenders were not doing enough to support customers experiencing financial hardship. A better branch atmosphere cannot correct a process that fails the customer.

Sensory design can support a good process.

A calm arrival, clear welcome, discreet queue, appropriate sound and access to a private meeting area can make it easier for a customer to begin a difficult conversation.

The interaction with the employee remains central. In the United States, J.D. Power found that bank branch satisfaction was 123 points higher when banks consistently delivered basic service behaviours such as welcoming customers, serving them promptly, thanking them and using their name.

Music and scent should make the environment more conducive to that interaction without drawing attention away from it.

Creating a calmer bank branch customer experience

As routine banking continues to move online, branches will handle a greater concentration of interactions involving financial pressure, vulnerability and major decisions.

The environment surrounding these conversations deserves careful attention.

Research shows that music and scent can affect anxiety, mood, customer satisfaction and the experience of waiting. It also shows that poor execution or excessive sensory input can work against the intended result.

For Australian banks, the opportunity is to apply that evidence carefully, measure the results and build a branch environment suited to the conversations now taking place inside it.

The customer’s financial problem may be difficult. The branch does not need to make it feel harder.

Frequently asked questions

Can background music reduce anxiety in a bank branch?

Research from waiting rooms and other service environments suggests that carefully selected background music may reduce anxiety and improve how customers perceive the environment. The effect depends on the music, volume, setting and customer group.

What music is suitable for bank branches?

Bank branch music should generally support a calm, credible environment. Low to moderate energy, controlled volume and limited distracting lyrics may be appropriate. The music should also fit the bank’s brand and customer base.

Can scent make bank customers feel calmer?

Studies in healthcare waiting rooms have found that lavender and orange scents can reduce current anxiety and improve mood. Banks would need to test scent carefully due to allergies, asthma and sensory sensitivities.

Should banks use music and scent at the same time?

Not automatically. One waiting-room study found that music and scent reduced anxiety separately but not when combined. Sensory elements should be tested together to make sure they support rather than compete with each other.

How can banks measure the effect of sensory design?

Banks can compare customer stress on arrival and departure, perceived waiting time, satisfaction, privacy, queue abandonment, complaints and employee feedback across matched pilot branches.