Bank Branch Transformation: The Crucial Role of Technology

In my last blog we discussed the evolving role and positioning of bank branches in the digital age. This blog considers the crucial role of technology in delivering a truly omnichannel and seamless banking experience, and its implications for the bank branch of the future.

Bank branch economics are changing fast, but many people still like to visit a branch, albeit less frequently and for different purposes. Branches can, and should, provide great customer experiences, build trust and relationships, and sit at the intersection of digital and physical engagement. Even in this digital age, visiting a bank branch is still appropriate for many customers and services.

The branch of the future will remain integral to a truly customer-centric banking strategy. But the reality is that traditional branches must be modernized to reflect a changing world. Modernization will take multiple forms including redesigning the physical space inside the branches, adopting transformative technologies, and integrating and improving the banking experience in ways that satisfy customers and build loyalty and relationships.

Following are key characteristics to incorporate in modern branch banking.

Physical Modernization

• Open Format. With branches performing fewer “counter services” such as taking deposits and cashing checks, the physical layout of the branch no longer requires a physical counter and teller lines. The branch can be remodeled into an open and inviting format, more conducive to conversation and emphasizing the human connection.

• Digital-forward branches. Modern branches, often with smaller footprints, must embrace digital self-service to increase efficiency and offer a smooth customer experience. The branch is the ideal location to showcase digital channels and how they combine to offer an integrated customer experience. The prerequisite? First break down any silos that may exist between your bank’s channels to ensure customers actually can move seamlessly from any one channel to another.

• Flagships and community centers. Fostering the bank’s brand image and building customer trust is easier in person than via digital channels. Larger bank branches in key locations can play a crucial role as centers of brand engagement – along the lines of Apple stores, where customers visit to browse, learn more about products, get advice, and buy. In addition, bank branches can serve as community centers to increase customer engagement and build trust. Once again, banking can learn from retail stores – customers are more likely to enjoy visiting a branch if it looks more like a café and less like a traditional branch. Banks should think creatively about how they can use physical space to enhance their brand, deliver value and build stronger relationships with the communities they serve.

Technology Transformation

• Seamless experiences. Ensure the bank’s infrastructure and platforms offer seamless interaction. Banking ecosystems provide an array of choices and opportunities, but the technology needs to be adaptable and deployed with a cohesive strategy, vision, and unwavering customer-centric focus.

• Interactive screens. These empower customers to self-serve with assistance if required. For example, customers can continue or complete a journey that began on a remote channel. Many customers are happy to begin a journey remotely but prefer to complete it in branch. They may be looking for answers to specific questions or want to explore available options. Interactive screens can also be used to promote new bank products to customers who are likely to want them.

• Customer device enablement.  The branch of the future will leverage the customers’ own devices to reduce friction and enhance the overall in-branch experience. Numerous use cases are emerging for this. Banks may need to upgrade their infrastructure, such as implementing customer Wi-Fi now to enable these use cases, and ensure their systems support the full omnichannel experience.
  
  With customer device enablement, customers who start transactions or applications on their device can continue in-branch with a banker seamlessly. Appointments can be booked by customers and managed by bankers. Location services can be used to provide the customer directions and notify the banker when the customer arrives. Customer devices also offer strong identity verification and protection against fraud and can be used to confirm transactions and electronically sign documents.

• High Resolution Videos. Play engaging and informative videos in branch, preferably using the best screen display options available. Choose motifs that complement your brand and modernized branch. Provide ample content so as not to become overly repetitive during a typical branch visit. Promote community events to build relationships, and advertise wisely.

• Video banking and Interactive tellers. The pandemic created new banking habits. With branches closed, banks found new ways to interact remotely with customers using video links. The option proved to be popular. Video banking is here to stay and offers a bridge between digital and physical interaction. It offers convenience and privacy for customers, and gives banks the opportunity to provide personal assistance via easy-to-use technology.
  
  Video banking can be delivered to customers on their phones, tablets, and computers; or via interactive teller machines or video meeting rooms depending on the need. In each case, video banking allows banks to deploy resources more cost effectively, extend opening hours and offer an integrated customer experience.

• Tablet technology. In certain circumstances it may be appropriate to take banking to the customer. By using tablet technology, bankers can meet customers away from the branch to provide advice and perform an expanding array of banking activities with the customer present. In practice a portable banker solution is a powerful business development tool that can boost customer engagement and productivity. However, to be effective, the solution must replicate the look and feel of in-branch devices.

• Future ready. The time is now to start planning and preparing for the transition to Web 3.0 and the metaverse. Smart technology choices will help you be ready for what the future holds.

Give Customers What They Want. Consistently.

The technology is available to begin building the smart branch of the future now.

Although digital banking is soaring, in some circumstances, customers still prefer the human touch, which suggests the bank branch has a bright future. Banks need to integrate technology into the branch experience as a powerful complement to the in-person services. Consistency and seamlessness is crucial – and in this respect, many banks still struggle. Like all aspects of banking, the in-branch experience is only as good as the bank’s technology.