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DIGITAL BANKING Tips - Tip 16: Branches: LOVE and HATE relationship with Digital Channels

Digital Banking channels used to be called as "Alternative Banking Channels" (some banks may still do that!), as the name implies they were considered as an alternative to the branches. As of today, as most of the transactions handled by Digital Channels - they are not alternative anymore but the main interaction points with bank clients. In spite of big migration to Digital Channels - Branch is still where banking starts and ends for many banks. That is why, branch is still part of the Digital Banking Picture and can contribute the growth of Digital Banking.  

At the time of the first introduction of online banking 17 years ago, while we were visiting branches to explain this new channel - the very first common response we met was - "is it going to take our place?”. I never believed that this would be case, but always knew that it was start of an era and nothing would be the same again. Since then, size of branches are smaller and branches are more sales/advisory oriented rather than operational. Also as the P/L (profit loss) metrics are very advanced now – measuring/comparing both channel and branch performance is quite easy. Depending on the bank's strategy this may result in expand or close branch network but Digital Banking is not the reason of closure, changing economic climate is.  

This is the short version of the post. 

Starting from Tip 2 to Tip 30 only short versions of my posts are available at Finextra. From Tip 31, full (long) versions of my posts can be read here.

 

 

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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