Can the increased mobility, the multi bank devices and all the other wording to tell a new story in "bank delivery", be a threat to bank branches.
Yes or not? And why? And if not how should bank branches change?
Dear Anna
The banking subsidiaries have a high operating cost and the challenge is to maintain profitability with a personnel structure linked to sales , services and consulting , leaving transactional background operations .
So , instead of competing with online channels , affiliates will integrate a strategy
customer experience that replicates in all the other channels . Thus , banks increasingly employ more automation in its network and services self-service to reduce operational load of staff who will be free to meet new demands in a personalized way .
In the near future , banks adopt digital signage , self-service kiosks and other technologies to improve the user experience and communicate more efficiently with each of its clients . Interactive screens will be installed in the branches for people to access , print and bring relevant information about the service or product they desire. Others will function electronic board , providing market updates in real time and exchange news . By touching the screens , customers can access the information they seek , prompting officials to seek services , prioritizing your place in line and referral to the appropriate representative.
source :
Hughes Network Systems , LLC.
© 2013 Hughes Network Systems LLC.
Dear Shafig,
Many thanks for your answer!
It can be true but I wouldn't generalized, The spectrum of the "old people" is very diversified and I see these people quite well equipped in terms of devices and it can be also a way to keep up them closed to the present evolution. They are those who could benefit more from the mobility mainstream, I think! It'd be a great opportunity or banks to educate customers to assess a different value proposition! I
Dear Nelon,
Many thanks for your answer. I'm with You, I think of the future will give banks plenty of opportunities to renew their cutomer relationship, if they are able to develop strategies behind these innovations and not just develop them for the sake of them! I think that Committent and a true Customer advocacy are the issues!
Dear Anna,
Banks' branches like many traditional services or products. The question is similar to a traditional reading from textbooks or electronic. I think still there are people, regardless of their age, would prefer reading from tangible text or paper rather than the electronic version. Same thing applies to the traditional banks' branches, there are people who would prefer to deposit their money at the branches rather than using the ATM. Therefore, bank branches are not and will not be dead.
Dear Saeed,
many thanks for your opinion. I do agree with it. Actually they're not going to die still for a long time but they should change as we can see around, but sometimes I wonder if this is the format customers are looking for! Wait and see their answers!
I think the answer has 2 sides.
Fist of all, the branches work like the exist sign of banks all around the world.
The customers keep the branch's name in their mind where ever they see them.
In other world, more branches you can see, more positive signal you can get.
On the other hand, based on stock holders and cost benefit rules, they are supposed to reduce the branches unavoidably.
Finally, the banks have to find out the new strategy.
One of the strategy might be using branches for supporting their customers learning new online banking equipments and other services.
Many thanks for your contribution.
I do agree on both sides of your answer.
I do really think that new stratgies must be visible to both inside the bank organization and outside to face customers changing behaviors.
Many banks are closing their branches due to cost constraints, but if they have to develop stronger brands, and so being more visible to customers, then they need to reconsider their distribution strategy and clarify better how they compete and position themselves in the market!
Some banks believe in a strategy of "personal banking" through a proliferation of branches - TD Bank in the East coast of USA. Others believe in doing both internet banking and branch banking and still others are in the internet banking space only. Whatever you choose, the key success factors that are important may be different. Branches may be important to some customer groups and therefore some banks may choose to satisfy that customer group.
Many thanks for your answer ! I fully agree! And this means that there isn't a one delivery strategy fitting all!
The new question is: who are your customers and then develop your business!
Thanks for your contribution and links. I fully agree. Too often banks decide in behalf of their customers!
The above contributions are worthwhile. However for proper financial inclusion to be effective bank branches still remain necessary especially in emerging market economies. Thanks
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