Branch evolution - transaction to relationship

Increased pressure on revenues, fees and capital are forcing financial services to find new ways to attract and retain customers based on the channels they prefer. With customer time and banker expertise at a premium, direct banking  services is likely to dominate the way consumers transact business with financial services and customer relationships will be built virtually.

Consumers’ attitudes towards channel preferences will dictate the way banking services are being delivered to customers and to keep building relationships financial services must change the branch usage model and propensity for customers to buy more financial products.  Gallup conducted a nationwide banking study that explored which channels customers prefer most to meet their financial needs. Surprisingly, while many credit unions are pushing enthusiastically to move customers into online or mobile channels, the study found that:

• 3 out of 4 consumers prefer in-branch interactions to open or close an account, apply for a loan or get financial advice.
• To report a problem or inquire about a fee or service charge, consumers prefer using a branch or interacting with a live call center representative.
• To make deposits, consumers still prefer using a branch. But consumers who want cash will use either a branch or ATM.

So yes, while customer behavior is changing and mobile and online technology is shifting transactions away from branches, it’s important to note that 3 out of 4 consumers still prefer to visit a branch for key financial services. The key is to create a balance and provide member options wrapped within your branded member experience through any channel selected.  That said, as the number of face time encounters declines, how can banks and credit unions capitalize on, and build deeper relationships with, the dwindling number of interactions they still do have with consumers?

In response, many banks and credits unions are transforming their branch strategy to support convenience, and provide value and services that are relevant to their customers’ needs, and finding ways to use technology to transform the branch from a cost-center into an income generator and relationship builder. For instance, according to a recent article  a technology called Telepresence is already being utilized by a major bank, credit unions and a mortgage organization to lead that transformation.

Integrating video communication like Telepresence into business will strengthen relationships and heighten communication with customers by providing a high-touch high-tech experience. Pioneering credit unions like Alabama Teachers and Mid-USA have launched the 3D Omni-Series technology from Buffalo Pacific.  TelepresenceTechnologies provides high-definition, 3D imaging and video communication with full eye contact, life-size images proportioned to human scale, and theater quality sound.. The technology is designed to give users the virtual sensation that a real, live financial advisor is sitting across the desk — as close as possible to the real thing.

Video communication is way to support the ability to increase efficiencies and streamline processes to leverage and build lasting relationships with customers! Learn more!

Robin Kolvek 

Senior Vice President, Business Development Officer

EPL, Inc.