We’re Already Right

Categories:

Well, that didn’t take long.

We’re not one to gloat, but we do know what we’re talking about.

In looking at some industry publications and comparing it to our Crystal Ball series posted over the past two weeks, there are two very interesting tidbits that have hit the wires that back up and corroborate our thoughts on the year to come.

Point #1 – The Branch Matters

Throughout the past year, there has been news of PNC, Chase, and others closing branches. Despite this and the tailspin that all of retail was caught in due to the pandemic, it has been proven that the branch still matters.

In fact, according to a recently conducted Novantas survey published by American Banker, “Despite the increased adoption of digital banking, branches still matter to consumers as they select which institution they want to bank with, research has shown.”

Furthermore, a recent Forbes Article states that while the pandemic has impacted branches, they still remain important, only possibly, and likely evolving (which they were regardless).

Despite headwinds, the branch is still a critical component. Clients want to meet in person for transactions such as account openings and decisions on which institution to bank with. It is a critical component to a well-planned and executed omni-channel strategy.

So, don’t take our word for it – other independent periodicals are saying the same thing.

While digital and FinTech get all the headlines, the branch is still the anchor point for consumer FI’s.

Point #2 – Digital Only Is Not That Simple

Speaking of digital – yes, you click on the articles and yes, you are intrigued. You should not become a “digital only” brand, though.

In recent news, BBVA announced that it is Shutting Down Simple. The online-only banking app is to begin migrating all users into the standard BBVA digital ecosystem.

So, what to make of this? Digital is important, but it’s not the single answer. Similar to the point made above (and in our Crystal Ball series) a well balanced omni-channel strategy is the right approach. Investment weights in the channels can ebb and flow year over year, but, over time, they should even themselves out.

If your digital experience is lacking, it’s time to get it up to par. You will not outcompete the big banks, nor should you pivot and try to become the next FinTech darling. Simple already wore that crown and look at where it is now – a footnote.

Would you like to speak with an expert regarding your branch strategy and how to balance your customer channels? The experts at LEVEL5 are ready to speak with you today.

A great place to start is with our data driven Consulting Group, who can assess your branch network and help you make the right decisions – Contact Us today to get the conversation going.