Three-D avatars. Machines armed with artificial intelligence. Robots, even. All of these, forecasters predict, will take over bank branches in the future. But it won’t be a hostile takeover, let alone one where humans are relegated to second-class status. In fact, bank employees will see their roles expand, allowing increased flexibility to take services to customers in Read More
Amid the smoky aroma of fresh-roasted coffee and the sweet scent of pastries, Scott Maykis starts his morning routine by tapping into the free Wi-Fi at the Capital One Café on Chicago’s Gold Coast. But he’s not checking into the café-style branch bank for the money. He’s not even a customer. A management consultant who works nearby, Read More
Through this scenario, consider the impact technology is having on how consumers navigate something as routine as their daily lunch hour: Before an executive even leaves her office, she preorders and pays for her favorite meal at a nearby quick-service restaurant via her mobile device—and bypasses the line to pick up her already prepared food. Before driving Read More
The recent article in Banking Strategies Online, "Three things you must consider when closing branches," (Oct. 10) omitted a key consideration: namely, how to preserve the personal relationships that developed between staff and customers at the closed branch. Banking customers can be divided into three broad groups—Millennials, small business and commercial customers, and those of us retail Read More
Just what will bank branches look like 10 years down the line? They’ll look smaller, for starters – and feature self-service machines to work transactions that free up staff. That way, bank employees can give more financial advice to customers on even basic literacy topics. But to abuse a cliché, the bucks will hardly stop there. Those Read More
There is no doubt that bank customers of all ages and incomes are moving to digital channels to conduct financial transactions. Use of mobile banking applications to check balances, transfer funds, pay bills and even deposit checks is growing rapidly. Furthermore, more customers are going online to open accounts and apply for loans. But does that mean Read More
It seems like every week you hear about another bank’s plans to close some large number of branches. Some analysts predict (though I don’t agree) that half of all branches open today will close in the next few decades as online and mobile banking fully takes hold with consumers and small businesses. Due to today’s very low Read More
It has been a common banking practice across the U.S. and Canada for decades; customers conduct transactions from their cars outside of brick and mortar branches via a clear plastic cylinder sucked from auto to teller via a vacuum tube. But while this low- tech method of banking is customer friendly, it requires one or more tellers Read More
I’ve read many articles about the death of bank branches since I started in the industry more than 30 years ago. Since then, my position hasn’t wavered much: Bank branches aren’t going away—but they must change. Why? Three reasons: For most banks, branch networks are the first or second largest expense category. Most banks have seen human-based Read More
How will retail banking’s changing service model define the branch of the future? With adoption of online and mobile banking on the rise, customers are visiting branches less frequently. But when they do, they’re looking to conduct high value transactions that require more personalized service. Results of a 2014 GenPact and YouGov online survey confirm this trend, indicating that younger bank customers are migrating Read More
There is no doubt that a growing number of bank customers are using digital channels, either via their PCs or mobile phones, as their primary means to communicate with the bank. And they are doing more than just checking account balances and paying bills; they are using digital channels to find out about bank products and get Read More
In recent years, banks have been focused on driving costs out of the branch network with self-service technology, branch closures and staff reductions. Yet, there is a genuine risk that driving any more cost out of the branches with across-the-board staff cuts will drive customers out of the bank altogether.“Workforce is the lifeblood of any organization,” according Read More
At one end of the continuum for branch lobby services and sales are those banks whose frontline staff are well trained and equipped to combine prompt, knowledgeable and courteous service with enviable cross-sale rates. At the other end … well, let’s just say no financial services provider wants to be there.Where does your branch performance land on Read More
As consumer digital migration drains ever more branch traffic, banks have been working through a delicate transition with branch staffing.Amid all the pressing questions, sales, service, headcount and skills, executives have drawn comfort from the assumption that they at least had a rough idea of how consumer branch usage would shake out. Ultimately, it has been thought, Read More
Microbusinesses, defined as firms with annual revenues of less than $1 million, constitute 90% of all businesses and thus represent a significant opportunity for banks. But given the small size of loans involved in this segment, how does a bank profitably serve these customers?The following is a suggested ten-step process for improving branch sales and service to Read More
Bigger is better may not have been what the politicians and regulators envisioned post-financial crisis but that’s what we now have in the banking industry. In short, big banks in the United States have closed ranks and gotten much bigger over the past decade, while smaller banks have either merged their way into the middle tier ranks, Read More
If you have only scanned the headlines from the business world, the news about bank branches seems grim, as every week brings more branch closings by banks and credit unions.In many of those instances, managers of the financial institution cite the changing nature of customer behavior. And yes, transactions are down dramatically, with volume dropping 45% since Read More
Deposit spreads have been the bane of banks in recent years but that could change if interest rates continue to rise. Here’s why bankers should pay more attention to their deposit balances going forward:In the summer of 2006, the Federal Reserve ended a two-year binge raising the Fed Funds Rate, which had soared from 1% to 5.25% Read More
It goes without saying that retail banking has many moving parts and Bank-at-Work programs are no exception. From target strategy to sales protocols and from results tracking to offer fulfillment, successful program implementation requires that banks maintain a comprehensive structure around their Bank-at-Work initiatives.But within that program structure, three things stand out because without them you’ll just Read More
The retail industry is perhaps one of the most advanced verticals when it comes to effectively using data analytics to engage customers at the right time, in the right context and with the right information to increase sales. Retailers excel at capturing data on customer behaviors, preferences and buying patterns and then analyzing it to create highly Read More
