Future of the Branch
Size and Role of Branches
As automated and assistedself-service capabilities of banks increase, the size of the typical branch will decrease. The bank will often serve as a showroom for complex product sales and as a venue for expert advice.
This format of the branch offers retail-like displays providing customers with the opportunity to browse in self-serve aisles focusing on standardized products and services that are already available via online channels, such as account opening and loan application. The ‘shop’ format requires minimal staffing with limited advisory.
This branch format is primarily designed for building strong customer relationships by offering a relaxed atmosphere to help customers get acquainted with the bank and simultaneously receive basic levels of advice, as needed. The “Lounge” offers high levels of customer intimacy with its focus on providing complimentary services and enhancing customer engagement. The focus of this format is not on selling but on cultivating customer relationships for cross- selling and up-selling services.
The “Digital Pod”
This branch format allows customers to perform all the transactions of a physical bank branch using sophisticated digital technology. “Digital Pods” introduce consumers to the next generation in banking technology. The “Digital Pod” employs advanced digital tools and technologies, such as videoconferencing, online document sharing, etc. with minimal staffing.
The future of banking most probably involves a completely revamped branch structures however, what will the bank branch of the future look like?