Far from being an anachronism, used properly bank branches have the potential to drive improvements in customer service delivery, ensuring high levels of satisfaction and customer retention as well as lowering costs and generating new revenue opportunities. But there's that word, 'potential'. It's one thing to recognise an opportunity but another to take appropriate action to deliver on that promise.

 

A recent report from Celent highlights three key reasons for the ongoing use of bank branches in North America and analyses the extent to which banks are currently falling short in delivering on these objectives.

 

In recognising the challenge facing forward thinking retail banks the report identifies the following operating priorities at the branch level: improving sales performance, perfecting customer experience and utilisation of digital channels. In short, what we are talking about is turning what has traditionally been viewed as a cost centre into a personal banking opportunity generator.

 

How do today's branches fall short and what role can new technologies play in enhancing branch channel effectiveness?

 

As the branch moves from a traditional transaction-based model to rather focus on sales and service, Celent has identified a number of issues, including Investment in technology - tools to deliver personal experience

• Investment in technology - tools to deliver personal experience
• Recruitment and training of staff to fill changing roles
• Use of mobile technology by frontline staff
• Making best use of staff time to increase productivity

In the case of new technologies, as well as TCRs redefining the teller function and enabling greater customer interaction, assisted service technologies enable the migration of labour-intensive transactions to digital channels while retaining the opportunity for staff intervention and freeing up valuable resources.

 

Redefinition of the teller function means a change in the required skill set with communication and sales skills becoming the norm. Evidence suggests that recruitment and training of appropriate staff has been an issue for smaller financial institutions. There is a significantly different job spec for an empowered facilitator compared with a traditional teller. But it's not just about recruitment.

 

Customers now visit branches less frequently. UK research from CACI indicates that rather than the 2017 level of 6 branch visits a year, by 2020 the average bank customer will only visit a branch on 4 occasions. Less frequent visits heighten the need for enhanced interaction so that staff take advantage of each opportunity - and staff need the tools to do this. Making staff available is a starting point, but that alone is not enough. Improvements in productivity require deployment of the right tools. The Celent report explains how 'tablets equipped with the right applications can literally reinvent the branch customer experience'.

 

Across the branch network getting the right staff in the correct place to deliver the most effective customer service is a new challenge facing all banks and Celent reports that work still needs to be done in the area of Workforce Management (WFM), enabling banks to get the balance right on staffing.

 

Perhaps a more fundamental issue for the banks when it comes to branch transformation is the continuing gap between understanding / recognition of the need for a new direction and implementation of the policies required to effect this change.

 

It is one thing to recognise the importance of improved customer service but another to deliver on improved waiting times, staff availability, convenient hours and staff training. For many institutions a starting point would be to measure some of these key metrics. How can you hope to improve something if you don't measure it? 81 percent of those surveyed by Celent said delivering customer service was a top priority. At the same time a half of large banks and 70 percent of smaller financial institutions do not measure teller wait times. As an indicator of why wait times are an important aspect of service and how it is perceived, an October 2017 IBM banking industry blog highlighted the fact that 'it's not unusual for an emerging market bank to see a 20-30 minute waiting line'.

The report also indicated what might be viewed as a lack of joined up thinking in some aspects of branch management.  

 

According to Celent, two thirds of respondents felt that non-customer facing activities are either not a concern or not a problem needing a solution. It is difficult to reconcile this with an acknowledged desire to improve service delivery and to redevelop the branch staff function.

 

So where does this leave us?

Though legacy constraints remain a barrier to change in North America the evidence suggests that increasing numbers of retail financial institutions recognise the need to evolve their branch networks as part of omnichannel service delivery and are taking steps to do so. However, the Celent research indicates that there remains much to be done. Banks need to 'design for change' and 'today's branches can't be effectively managed using yesterday's technology'. Moving forward, it is recognised that 'managing the complexity and pace of change needs to be a core competency'.

 

At Glory we recognise the role of technology as a catalyst for branch transformation and continue to work with financial institutions worldwide to enhance branch service delivery. Our TellerInfinity™ solution delivers a unique combination of powerful features that transforms your service offer and enables a new approach to in-branch staff deployment. If you're serious about branch transformation then contact your local Glory sales representative or drop us an email using info@uk.glory-global.com.