Not too long ago, a bank’s presence was defined by its physical footprint. Occupying large spaces in the busiest places for maximum visibility was the aim. Today, spurred by the impact of the COVID-19 pandemic as well as the digital revolution, financial institutions are downsizing physical branches in favour of embracing new technologies and ways of conducting financial business to remain relevant.

Key efforts have been placed on branch transformation and many tasks previously performed by humans are being automated. This has opened up a new realm of possibilities for retail branches to transform how they can best serve their customers.

It’s common for customers to transact using self-service terminals for depositing checks and cash, withdrawing cash, and transferring funds. Customers benefit by saving time as they don't need to wait in line to interact with a bank employee, while branch staff can prioritise high-value tasks for customers in need, making it a mutually beneficial solution.

The banking industry is undergoing a revolutionary shift, and it's not just the players in it. Customers are changing too. Now more than ever, the focus needs to be placed on investing in new ways to do business and adopt technology that can handle the changing needs and expectations of customers. However, simply responding by migrating operations digitally is not sufficient as technology alone cannot replace physical interactions for sales, advisory consultations and servicing needs. It must make banking more convenient, efficient, and customer-centric.

Technology is driving consumers to shift their longstanding habits

“Customers are becoming used to the ‘bank’ as an app rather than a building,” as experts from Boston Consulting Group put it. One suggestion for traditional banks to transform their business was to standardise processes that allow end-to-end automation and customer self-service wherever possible. Essentially, that means using technology to support time-consuming and repetitive tasks, and dedicating human resources to high-value activities such as handling exceptions, offering advice, and facilitating complex transactions. Ultimately, the improved experience needs to be linked to the bank's key performance indicators (KPIs) for customer satisfaction, loyalty, revenue, and profit growth.

Optimisation of the branch layout and design is critical

According to a recent report by Deloitte, some banks have quickly transformed to keep up with their competition. One such example is the Commonwealth Bank of Australia (CBA). With underserved customers in mind, CBA adapted its branch designs with more inclusive and thoughtful features such as braille signage, video and audio emergency alarms, and space for wheelchair parking. Meanwhile, one of Singapore’s leading banks, OCBC, recently opened its largest lifestyle and banking branch — a bold statement that signals its confidence in physical branches being a relevant channel to connect to its customers.

Beyond reimagining their branches, some banks have maintained their brick-and-mortar presence strategically through the introduction of off-site ATMs and kiosks, and satellite branches. Each channel can be operated uniquely to serve different targeted customer segments.

The link between digital and physical is key

A McKinsey study found that sentiment toward branch interactions remains positive, with suggestions to digitally enable the human experience — blending digital and physical to enhance the customer’s experience.

In many cases, customers are demanding more personalised services than ever before. They want the conversations tailored to their needs and preferences, rather than just going through an automated system or chatbot. At the same time, they expect a customised response to their requests, with a fast turnaround and without the need for filling out mundane forms or answering repetitive questions.

To create a customer journey that is smooth, effortless, and personalised, it is important to pair the right technology with the right people and the right branch format. By effectively integrating technology and people, great customer relationships can be established. How it can be put into practice:

• Customer service: Digital tools to identify customers with ease while bank representatives are assigned according to their strengths and weaknesses to provide specialised support to resolve customers’ requests and issues.

• Customer support: With comprehensive accounts and customer profiles built using customer data, bank employees can be proactive in providing relevant recommendations to address customer pain points and offer solutions even before an issue even arises.

• Customer success: Create comfortable environments for bank employees to foster and build relationships with customers and use multiple data points to identify opportunities to upsell to customers.

Don’t settle for just any tool to help you transform your branch. To truly support your transformation efforts, it’s crucial to choose one that fits your specific needs. That’s where Glory’s Teller Cash Recyclers (TCRs) come in. TCRs have been widely accepted as the standard branch technology to assist universal bankers in providing a plethora of banking services to customers (cash transactions included), without having to manage an open cash drawer.

Key attributes and advantages of TCRs

• Security: A crucial factor to consider when handling cash outside of a traditional branch format, TCRs provide a secure vault with flexible deployment options to support open-plan layouts.

• Improved efficiency: TCRs speed up high-volume transactions and simplify daily reconciliation processes, giving staff more flexibility to meet customers' needs and focus on more high-level tasks.

• Flexibility: Can be deployed to accommodate different customer segments with varying levels of technology usability experience.

• Enhanced customer experience: Customers are free to choose their preferred method of service delivery; whether to go for self-service, or assisted service on-site with just a button click or the good old traditional teller-customer counter.

• Agile and future-proofing: Ability to innovate at speed and scale to meet banks’ shifting needs.

From process automation to technology innovation, service interaction to blockchain and artificial intelligence (AI), and everything in between, the spectrum of options can be overwhelming.

While banks can leverage technology to drive digital modernisation and branch transformation, it has its share of risks and challenges.

The question is: how can you stay ahead of the curve?

Short answer: there is no one-size-fits-all solution, unfortunately. Banks should be guided by a clear understanding of customer behaviour, geographical data and their own objectives to organise their employees, services, and tools to meet new market demands.

One way to begin is to determine the type of customer experience that aligns with your bank's values and goals. From there, consider which of our offerings can effectively meet your business expectations and goals.

Glory, a long-time industry leader in financial branch automation solutions, has an edge in the diversity of perspectives, experiences, and geographies. We’re in the best position to understand your unique needs and challenges and recommend solutions suited to your specific goals.



Already have something in mind? Head over to https://www.glory-global.com/en-sg/industries/financial-institutions/ to find out more.