Reimagining Branch Transformation in the Digital Era

Banking CIO Outlook | Tuesday, December 15, 2020

Despite the decline in branch-based transactions, the branch recapitulates its strategies and growth objectives to stay ahead.

FREMONT, CA: Consumer banking preferences are changing continually, and it is essential for financial organizations to transform their branch networks. Some of this transformation will inevitably involve branch closings. It will need to respond to the desires of the increasingly digital consumers while becoming both more cost-efficient and sales-effective. Pivotal to this branch evolution is innovative self-service technology that can substitute tellers and improve platform personnel sales results. There are several steps to branch the future of banking transformation success.

• Creating a Positive Self-Service Experience

To be successful, it is determined that in-branch self-service options must be fast, secure, and simple. Self-services options which are quickly available and ready to perform transactions better the provision of services. Technology that involves the least mental and physical effort on the part of consumers avoids the need to learn the machine, which could impact acceptance. Physical improvements with well-considered buffer zones provide the privacy desired by consumers.

• Developing a Holistic Approach   

The transition to a self-service solution doesn't mean the dismissal of human interaction, but the alliance of human interface with the digital delivery of service. Customers have embraced multichannel access, and other methods to optimize bank branch interactions.

• Understanding an ROI Model

To move ahead with a branch transformation project, banks and credit unions assign values to all cost components of branch operations. Branch transactions seem to be expensive and costs of online and mobile alternatives must also be understood to make preferable branch transformation decisions. In the income's perspective, the potential for expanded branch sales are to be considered as personnel are redeployed from transaction-based roles to client servicing.

Various financial institution branch design aspects have occurred through the years based on the observed needs of the marketplace, combined with the goals of specific organizations. The most competent branch designs for the future will most likely be a blend of elements used in the past, tailored for the digital future. The key will be to give a cost-efficient design that offers the best customer experience in alignment with the brand and objectives of the organization.

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