The banking industry is quickly evolving in response to technology advancements, financial literacy initiatives, and the opportunity to gain a new generation of customers/members. Financial institutions are reevaluating the role of their branch environments and branch experience. In short, bank and credit union branches should deliver value. With a renewed focus on customer service and relationship building, banks are aiming to transform branches beyond transaction facilities focusing on key drivers of growth and value.
As digital tools enhance how we engage in business, customers find themselves equipped with numerous online options for transactions but often lack sufficient access to human interaction. This gap presents a competitive opportunity for banks willing to provide personalized, collaborative experiences in their branches.
Foot Traffic Is Increasing
Foot traffic in bank and credit union branches has increased post-pandemic, especially among younger customers, according to a recent report, Gen Z and the Future of Finance, from Adrenaline. After a significant reduction in physical locations since 2009, the pace of branch closures has slowed in 2023, indicating a potential renaissance for physical branch growth.
To leverage this shift, banks are rethinking their branch locations, interiors and customer interactions. Here are a few strategies to consider when discussing your future branch expansion or transformation strategy to focus more on value:
Staff Branches with Experts
In the early eighties, banks and credit unions shifted from positions focused on a single task (i.e., tellers, lenders, CSRs/MSRs) and embraced the universal banker model. This allowed all branch employees to have the capability of addressing a range of product questions and actions. However, ensuring that these experts are accessible can be challenging, particularly during peak walk-in hours. Today’s branches must offer an Expert Anywhere service offering. Using technology such as ITMS, Live Stream Stations, and Video Conferencing offers clients access to employees across that financial institution’s branch network who can assist at a moment’s notice. The expert anywhere approach offers a more robust service delivery experience and turns potential frustrations into valuable opportunities.
Adopt a Concierge Mentality
Traditionally, bank branches have operated with employees stationed at desks, creating a barrier between staff and clients. This setup lends itself to a transactional approach. However, does it deliver the best level of service? Enhance the branch experience with a more mobile approach utilizing greeters, handheld devices, and an ‘at-the-ready’ approach to interact directly with clients. Free-up your employee’s time and opportunity to deepen relationships by simplifying tasks like cash handling.
Human Connection is Still On Trend
Clients are increasingly researching their financial options online but prefer face-to-face interactions when making financial decisions. This change calls for a new operational model in bank branches. Develop your branch employees to focus on financial literacy and personalized advice. The majority of consumers, especially the younger generation, still appreciates the convenience of branch location and connection with knowledgeable branch staff.
Build a Community-First Mentality
Building and managing strong connections within local communities significantly enhances a bank or credit union branch’s reputation and client loyalty. This shouldn’t be left up to the corporate office. Each branch should work to build their own local connection to the community. By engaging in community events and initiatives, the opportunity to position the branch as a trusted financial partner helps rather than being just a transactional entity. This community focus not only strengthens customer/member relationships but also bolsters the institution’s overall brand.
Overall, the role of branches must evolve beyond mere transaction centers as the banking industry adapts to new consumer expectations. By emphasizing trust, enhancing customer interactions, leveraging technology, and fostering community engagement, banks can transform their branches into valuable assets that drive growth and strengthen relationships. In this dynamic landscape, the future of banking will be defined not by digital tools alone, but by the quality of human connections forged within the branch.
Looking for help with strategic planning for branch expansion or transformation? Contact us for more insight or to schedule a meeting with one of our amazing associates. Learn more about our branch transformation program.
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