Future Bank Branch

As digital banking usage continues to increase, customer traffic in bank branches has been drastically reduced. In fact, 94% of consumers under 35-years-old bank online, according to First Data’s report, The Unbanked Generation. The problem has grown so overwhelming that it has become the biggest concern branch banking is facing.

So far, the approach that many banks have taken is reactive, without being grounded in analysis. The resulting panic has driven many bankers to try to copy successful retail models, hoping to replicate their success.

To illustrate this point, earlier this year at a banking conference, a discussion was overheard between three bankers who were talking about the future of the American bank branch. They had just listened to a speech by James Gilmore, co-author of The Experience Economy, in which he made the point that American commerce is moving from products and services to experiences. The three of them seemed to be inspired by the speech and were talking about how to turn a branch visit into a memorable experience.

According to Jim Bruene, the four cornerstones of the American bank branch are:

Opening Accounts: Primarily for someone new to the bank
Servicing Accounts: Usually when there is a problem
Administer Advice: Primarily for more involved services like loans and business services
Provide Visible Reinforcement of the Brand: (i.e. very expensive billboards)

If these four activities are in fact the “cornerstones” that make up today’s bank branch deliverables, there are digital technologies that can be applied to each activity.

• Opening Accounts: Primarily for someone new to the bank
• Servicing Accounts: Usually when there is a problem
• Administer Advice: Primarily for more involved services like loans and business services
• Provide Visible Reinforcement of the Brand: (i.e. very expensive billboards)

If these four activities are in fact the “cornerstones” that make up today’s bank branch deliverables, there are digital technologies that can be applied to each activity.