Branch Transformation: Four Ways to Turn Pain Points into Touchpoints

You have questions about branch transformation, we have answers.

Pain Point: Everyone’s going digital!

Touchpoint: (Almost) everyone is still using their brick-and-mortar branch.

How many TV channels does the average North American viewer have access to? Almost 200, according to a 2013 Nielsen report.

We like options.

The same holds true when it comes to banking: FI consumers have never met a banking channel they didn’t like.
We like channels … but do we actually use them?

Accessibility to more television channels has increased by almost 50% since 2008 (from 129 to 189), yet year after year, we still watch around 17 of them.

FI consumer actions mimic that pattern. The Federal Reserve reported in 2014 that the most common method of interacting with a bank is still a face-to-face transaction. The board found that 82% of consumers with a bank account had visited a branch and spoken with a teller within the previous year. Meanwhile, just 30% of respondents had utilized mobile banking.

Just 30%.

Of course, that number is growing, and fast. Yet branch banking clearly remains a vital linchpin in a successful bank transformation strategy. FIs must be able to objectively and thoughtfully plan their transformations in a way that humors the subjective desires of an evolving consumer base.

Pain Point: Our tellers are bogged down carrying out simple transactions for our consumers.

Touchpoint: Automation at the branch level enables freedom of choice and creates a positive experience.

Automation and more robust analytics are driving FIs into a new landscape of consumer interactions, featuring richer, more predictive information. As that evolution begins, “choice” becomes the keyword. Swiss bank UBS recently worked with our EMEA Center of Innovation to roll out more than 400 tailored, self-service units across its branch network. These new terminals offer cashless transactions such as bill pay and asset overviews.
Consumers who enter these branches are now faced with new options, new choices … and a sense of freedom. They’re not tied to the teller line for more complex transactions, yet there’s a real person available should they require more assistance.

We’ve seen deposit automation technology eliminate up to 90% of teller transactions, freeing both employees and consumers from the traditional in-branch banking boundaries.

Pain Point: Tellers are expensive – do we even need them anymore?

Touchpoint: Tellers are still a vital connection between FIs and consumers.

Studies show that 63% of millennials who want to complete a complex transaction choose to do so at a brick-and-mortar branch location.

Millennials!

Many consumers still feel most comfortable conducting their banking business with a real person, face to face. Harnessing that fact, forward-thinking banks are capitalizing on their built-in investment (their people) by transforming staff from tellers to advisors (skipping right past the “seller” part).

The Diebold Advisory Services Team recently helped one FI right-size its branch footprint with in-branch technology and a new staffing model. Those tweaks resulted in a 29% increase in sales productivity. “Universal bankers” can now move beyond transactional exchanges to provide far more compelling consumer experiences that resonate long after the visit is over.

Pain Point: Things are moving so fast – and there’s no clear “right” direction.

Touchpoint: Successful branch transformation requires a long-term strategy, not a short-term audit of foot traffic.

Online and mobile outlets are nimble and fast. Every day they come up with new ways to encroach on FI’s traditional revenue streams. Yet speeding headlong into a solution that feels “right” right now is most likely the wrong approach. Gartner analysis states that the banking and investment services industry in North America spends more on technology than any other industry in any region worldwide.

That’s some big spending.

In other words, a deep breath and some deep thought are required. Whether it’s transitioning to a hub-and-spoke branch model, incorporating the sleek, modern whitespaces of an Apple store or sprinkling every last inch of your branch with automation pixie dust, there are many, many enticing approaches to branch transformation.

Partnering with an end-to-end solutions provider can take the guess-work out of the process. The first step in any Diebold Advisory Services partnership involves a thorough inspection of current-state systems unique to the bank in question, before any recommendations can be made. How does that compare to your current branch transformation strategy?

Find out more about how Diebold can help you make smart decisions about branch transformation here. Have more questions? Just ask.