Maximizing Digital and the Branch Equals Transformation

Our recent webinar on Bricks, Clicks and Community Banks dove into the need for financial institutions to optimize digital and physical channels. Consumers today desire an omni-channel approach (online, physical and automation) because digital channels have redefined the notion of “convenience”. A financial institutions ability to maximize online and mobile banking can have a dramatic impact on performance. Digital transactions cost banks and credit unions about 10 cents per interaction compared to $4 for a transaction with an employee in a physical branch. By automating the routine, then the scale and efficiency provided through online channels is possible in a way that physical branches cannot duplicate.

Consumers and the Branch

Yet, consumers still visit branches on a regular basis, including millennials (generation Y).  In fact, research shows that millennials are the mostly likely demographic to visit a branch to apply for an receive a loan. A 2018 study by Foresee sheds more light on consumer behavior across all channels. Their research looked at customer acquisition throughout their journey to open an account. Foresee uncovered that 60% of all bank and credit union consumers start their journey online (website and mobile) – whereas 35% start at the branch. Not too shocking that most consumers would start their banking journey online. However, 60% of online originators (remember the original 60%?) end up in branch. The main point is more than 70% of all customers end up in a branch at some point in their journey.

The Gold in the Branch

All the data points to customers believe something more valuable than gold is within the four walls of today’s branch. The real gold are the bankers within a bank or credit union’s facility. Today’s universal banker has the ability to serve consumer’s needs better than ever. So optimizing optimizing the branch is a top priority. Matching consumer needs and the services offered at bank or credit union is sucess.

The process for Branch of the Future and/or Transformation is a Three-Legged Stool. The three legged stool is Function, Experience and Technology. (We’ve written an entire blog post on this topic)

Stories from the Field

To bring the concepts and presentation into a real life context, Shaun Burke – President and CEO of Guaranty Bank in Springfield, MO joined the webinar. Shaun and his team are going through the process of transforming so much at their Bank. He walked the audience through where they have been, where they are today and where they are tomorrow. Some of the evidence of transformation is in the Bank’s new Headquarters which houses their “Branch of the Future”. (You can watch the the headquarter’s story here and download the entire 45-minute webinar below)

As always, there is so much more to be said and done in regards to optimizing the digital and physical channels. This webinar sought to bring together several pieces of the puzzle, and focus on a process to optimize the branch portion.

To download the webinar and watch it at your convenience click below. 

ABA Webinar Download