GLORY recently shared an article by Chris Skinner on its social media channels. Like all good pieces, it was thought provoking. Chris finished his piece arguing that the branch “is not a transaction, service or advice centre. It’s a centre of trust.” There is not much to argue with in the idea that the presence of a branch helps to create trust between a financial institution and the consumer.

Trust is fundamental to the relationship that customers have with any business. Financial institutions have always relied on trust. They have had to; people are giving them their money to look after. The branch has always had the consumers implicit trust.

There is the suggestion that “banks don’t need branches.” This I would argue is false, and something which I think the article does pretty well in dismantling as a statement in itself. Banks need branches to enable transactions. Branches are needed to attract new customers. Branches are necessary for customers, particularly small business customers to interact with their financial institutions.

SMB’s rely on branches to enable them to operate, to give change and depositing takings. Those consumers who are unsure of the products and services offered by financial institutions rely on branches to get face to face advice. Customers like to talk to people.

Being with people helps to build relationships with those that they are asking for advice from. When you are receiving information that is important to you, you often learn and take on board information better in person. People are able to gauge the sincerity and reliability of the person that they are talking to far easier in person, than over the phone or any other digital means.

What I found interesting about the piece, what I find interesting about the industry in general, is the desire to categorise branches as one thing or another. It is, surely, dangerous to try to be one thing in a world where consumer demands and expectations are as high as they are diverse. The branch for one demographic is not the same for another. But that doesn’t mean that the branch has to be one thing.

The modern branch must act as a transaction centre for SMB’s. For traditional customers who choose to interact with branch staff, the branch has to act as a service centre. The branch needs to serve all customers’ needs and expectations, the key thing is that customer needs are not static. By trying to define your branch as one thing, you are not enhancing your competitiveness, you could be harming it.

There are technologies available that can enable you to design your branch in a way that meets the needs of all your customers when they visit the branch. Automating cash processes in the branch is one of the key enablers to creating an environment that is flexible, welcoming and capable of meeting the needs of all customers.