While headlines focused on how retailers would adapt during
the 2020 pandemic, banks were quietly rolling out mobile apps, AI chatbots,
videoconferencing and various digital products to connect with customers when
branches were closed. But with the gradual return of in-person commerce, banks
are having to reconsider the role physical branches play in a world of
digitized customer experiences.
Though eighty-five percent of Americans say they will
continue to use digital tools to bank after the pandemic, 62% of banking
customers still prefer physical branches. How can banks distribute their
customer experience so that they are connecting with people in the right
moments, in their preferred channel? Up against competition from digital-native
neobanks and fintechs, how can traditional banks play to their traditional
strengths without losing a step?
Digital Banks Had a Head Start: Traditional Banks Can
Catch Up
Built on online banking foundations, digital and challenger
banks had a leg up in a socially-distanced financial environment. Traditional
banks, however, bring their own unique strengths to the table. Leveraging brand
trust, technology, and physical branches together often results in innovative
and attractive offerings.
Consider BofA’s AI chatbot, Erica. The bot initially helped
customers perform simple tasks via text or mobile app, such as checking
balances, paying bills, and accessing credit report updates. But Erica’s
abilities expanded over time. The chatbot now acts as an advanced virtual
assistant, using customer data to make personalized recommendations and offer
advice. Erica even schedules in-branch appointments for more complex or
high-value queries.
Increasingly, this kind of personalized financial service
will become a cornerstone of bank branches.
”Branches are still important,” U.S. Bank CEO Andy Cecere
insists, “but they’re going to be less of a place where people go for
transactions and more for advice and consultation.”
Perhaps Capital One saw this coming when it began opening
its cafés. Capital One’s Cafés are reimagined bank branches that opened to
customers and non-customers alike in 2016. They provide coffee, workspaces,
free Wi-Fi, and charging stations in addition to ATMs, “bank ambassadors”, and credit
card applications. They also offer free one-on-one money coaching and workshops
on topics like building savings, checking credit reports, or making a budget.
Without branches or cafés, online-only banks miss out on
valuable, trust-building facetime with customers who may want financial advice
or consultation. However, to fully leverage physical branches, banks need to
supplement them with customer-data-driven systems and processes to provide
personalized experiences.
The New In-Branch Experience
Using AI, banks can now target customer segments more
precisely than ever before. Have customers who are paying off debt? Send them a
personalized email about an in-branch workshop on debt repayment. Perhaps
include an estimate for how soon they can pay it off based on their current
income and spending.
Can education and consultations really keep traditional
banks competitive? If we take another look at retail, Best Buy certainly paints
a hopeful picture. In a bid to differentiate from Amazon, the electronics
vendor introduced an advisor program in 2016 for free in-home consultations. By
focusing on long-term relationships rather than sales, Best Buy built trust and
loyalty that keeps the company healthy today.
Branches are no longer the only place banking happens;
they’re just one more channel through which customers interact with their bank.
With phone, web, and mobile experiences properly unified, physical branches
become one more helpful interface.
To create a seamless experience from various overlapping channels,
banks should take a service-design approach, focusing on the tasks a customer
is trying to accomplish and highlighting the channel that best helps them get
things done.
Click here for the
original article.