A recent trends in banking report predicts that retail branches
globally
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are going to shrink both in number and in size, as
an increasing number of retail transactions are conducted
technologically through ATMs, mobile and online banking.
As retail banks undergo a significant transformation of their
branch network, including ‘third space’, a reduced footprint
will become ever less financially viable.
We believe that branches will evolve rapidly and embrace
innovation that could include:
1.
Business or leisure lounge for customers and
prospective customers
2.
Free WiFi
3.
Digital training on new devices and new applications
4.
Virtual meetings with experts via video conference
5.
Drop in workspace for bank employees.
It was clear from the conversations that significant change
would impact retail branch networks with the business
challenging the logic of spending £2m ($3m) fitting out a new
branch when transactions are increasingly fulfilled on line.
The retail branch network will shrink and focus on key
locations, becoming a place for customer interaction, training
and brand presence. One bank explained that, “automation
is high up on our agenda – to improve the experience for
the end customer. Automation will be key for both online
banking and for the high street experience”. The debate
focused on the need to create a place to make sales and this
function will continue. But encouraging footfall by providing
new facilities, refreshments and superior WiFi connectivity in
a space that infers security and privacy may become the next
forces that will reshape the portfolio.
But new threats and competitors on the high street will
emerge, particularly from the food retailers that are
developing their banking offers. For example, 26 million
people ‘touch’ Sainsbury’s each month but only 5% of these
customers bank with the retailer. Taking control of their
banking offer or entering into joint ventures such as Asda and
Barclays will change the competitive landscape.
National Australia Bank
(NAB)
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NAB has developed an impressive approach to their
Smart Store, removing barriers and the counter and
instead opening up a Store that engages customers and
encourages them to interact with products and staff.
Conventional tellers behind screens are gone and
instead staff sit at open desks, with self-service intelligent
machines for customers to manage cash deposits and
withdrawals. Digital media display real time offers and
marketing communications and customers can interact
with displays, sharing their own content to promote local
community initiatives.
The store provides a choice of interaction, from self-
service to full service.
16.
17.
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the-future-of-banking-first-smart-store
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The future of the financial workplace
|
September 2014
