According to a new report by Mckinsey, 10,000 bank branches have closed in the United States since the last financial crisis, and it is no surprise that there are far more bank transactions online than in branches.
However, the report makes the case for a new model for branches, and why they still can help increase a bank”s bottom line.
- BRICK AND MORTAR BRINGS SALES: Branches are still one of the leading sales channels for almost all elements of a bank’s business. Just because a transaction is done online does not mean it did not start at a branch.
- TARGETED SERVICE APPROACH: Banks need to take a look at the services their client base likes to do face to face. A targeted service approach makes the branch more efficient and saves in real estate costs.
- CUTTING EDGE BRANCH TECHNOLOGY: The branch should be consistent with the bank’s digital experience. A bank should not assume that the branch is just there for the ageing clients, but also for a full service experience even for those that are tech savvy.
- TELLER AND DESK FREE FORMATS: Think Apple Store at every location. The user experience does not have to be the same as it has been in order to feel welcome. A typical bank branch still has traditional teller lines, and waiting lists to talk to an expert. There is little reason why walking into a branch for a service cannot mirror the experience of walking into a welcoming environment like the Apple Store. You don’t walk into a branch to shop. You usually know what you are looking for before you arrive.