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Trying to predict what the bank of the future will look like is an almost impossible task as there is no definitive single answer. What can be said with some degree of certainty is that there is a revolution taking place within financial services.
The expectation of customers are rapidly changing as a result of technology; this naturally is now having an impact on the future role and function of retail bank branches. How banks address these points will vary and will depend largely on their own unique history and DNA. Factors under their consideration will include socioeconomic segment(s), and geographical and cultural locations. The forthcoming changes will require the integration of the bank’s customer interaction model across different channels, to ensure a smooth and coherent user experience in all customer segments.
All evidence points to the fact that the decline of ‘traditional’ bricks and mortar banks has been accelerated by the rise of digital banking in the UK and across the globe. More customers are choosing to bank online or use a mobile app rather than visit high street branches. The fall in absolute numbers has in some instances been as much as 50%. Forecasts for the next 5 years indicate that this decrease in branch visits will continue.
In its 2016 case study, BT Global Services revealed the following:
In light of these statistics, there is little doubt that the ‘branch’ is here to stay for the foreseeable future. The challenge facing banks will be in how they design and develop an effective strategy (use cases) for new branch models. These will require a detailed analysis of the three pillars underpinning the branch: accessibility, interaction and space.
The impact of the changes must be analysed and monitored in order to make the appropriate adjustments that will enable financial institutions to adopt the new model quickly and smoothly; even the most gradual changes can sometimes lead to Application Design errors that require adjustment. The four key indicators that should be measured during these changes would be:
The process of branch adaption means the physical appearance of bank branches will most likely change considerably, both in terms of their Application Design and the ways in which customers are served. Branches will not be disappearing as there is clear evidence that points to the continued desire across all customer segments for face to face human interaction.
What should change is the idea of what a branch should be and can do. At the heart of this change is the redefined customer experience enabled by evolved technology and informed by the relentless drive for applied customer data. In short, taking its guiding principles of frictionless convenience and transplanting them back to the physical world.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Alex Kreger Founder & CEO at UXDA
22 August
Nick Green Director at Purple Patch Broking Ltd
Priya Kumari
20 August
Oleg Stefanet Chief Risk Officer at payabl.
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