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Until recently, banks seemed to be neglecting their branches in favor of remote channels. However, they are now appreciating that branches are a highly effective channel for acquiring customers and selling products. Banks have therefore put in a lot of effort into improving the quality of the customer experience on offer in their branches. This report investigates the impact of these changes. The scope of this report includes a description of how and why banks are reassessing their branch strategies. The report also presents results from the Financial Services Consumer Insight Survey to highlight consumer preferences regarding the branch channel. Additionally, we provide an analysis of the latest trends in branch design and configuration, the use of technology and the role and function of staff. You will also be able to assess the outlook for branch networks. Highlights; Branches are moving away from a primarily transactional role towards a sales and advisory function. Many consumers prefer to use branches when buying or seeking advice on financial products, particularly more complex products, such as mortgages. New technology, such as touchscreens, video conferencing and digital signage are all helping to make the branch experience a more enjoyable and worthwhile one for customers. Open-plan architecture, retail-inspired design and clearer layouts have made branches more welcoming and easier to navigate. Although mergers and regulatory action in the wake of the banking crisis could lead to some branch closures, banks will continue to invest in their branch networks, as they are central to restoring trust and confidence in the industry. Consumers increasingly want to access their bank through a variety of channels, including branches. Amongst the reasons to purchase this report are :-*Learn about the latest trends in bank branch design and strategy. *Read case studies of providers who are introducing innovative developments into their branch networks, understand what the branch of the future might look like, and what roles it might fulfill. Table of Contents : Overview 1 Catalyst 1 Summary 1 Methodology 1 Executive Summary 2 Branches remain a vital communication and distribution channel for banks 2 Branches are increasingly geared towards the sale of complex and advised products 2 Branch design is changing radically 3 A retail-inspired approach to branch design is allowing banks to increase product sales 3 Technology is helping to enrich the customer experience 4 Digital signage can help to boost product sales and reduce boredom while waiting 4 Jyske Bank has put digital signage at the heart of its service proposition 4 Many banks view branch staff as being more vital than ever to their service propositions 5 A number of banks have placed a considerable investment in staff training 5 TD Bank is moving towards offering specialist sales and advice in its branches 5 Banks are taking an increasingly analytical approach to optimizing their branch networks 6 Branch layouts are moving away from a standardized look to one that varies by location 6 Branches remain the most effective channel for building relationships 6 Customers want to access their banks through a variety of channels 6 The branch channel will continue to evolve 6 Banks must rethink the purpose of their branches 7 Banks need to improve the quality of the in-branch experience 7 Table of Contents 8 Table of figures 9 Table of tables 10 Evaluating the customer experience 11 What does customer experience mean? 11 The evolution of customer experience 11 The importance of generating a satisfying customer experience 12 Providers are starting to focus on customer experience management 13 A lack of integration can cost providers dearly 13 Most banks now have in place extensive programs to monitor customer satisfaction 14 Customer loyalty is the key to profitability 14 Customer advocacy is an extremely powerful medium for winning new customers 15 Loyalty and advocacy are closely correlated with profitability and growth 16 Financial providers need to improve the quality of the customer experience they provide 17 There is much room for improvement in the standards of service that banks provide 17 Banks should focus on differentiating their customer experience 18 Emotional attributes are vital to creating a unique experience 18 How a bank handles moments of truth has a disproportionate impact upon the customer experience 18 Creating an attractive customer experience can enable banks to charge a premium for their offering 19 Rethinking the closure of branches 20 Rumors of the death of the branch have been greatly exaggerated 20 Bank branches seemed to be on their way out in the 1990s 20 Banks have been forced to think again about migrating away from the branch 20 Branches remain a vital communication and distribution channel for banks 21 Branches are increasingly geared towards the sale of complex and advised products 22 Regulatory demands are making it increasingly difficult to sell complex products via remote channels 26 Banks are encouraging customers to migrate to remote channels for routine transactions 26 Many consumers remain resistant to the charms of online banking 26 A proportion of online bankers still prefer face-to-face contact with their bank 27 Branches are a valuable channel for attracting retail deposits in the wake of the banking crisis 28 The new face of branch banking 29 Branch design is changing radically 29 A retail-inspired approach to branch design is allowing banks to increase product sales 29 Branch design is helping to reinforce brand image 29 Branches are being tailored to meet the needs of different customer segments 30 New trends in layout are helping to facilitate the customer journey through the branch 31 Zoning is helping to improve the operational efficiency of branches 32 Several banks are pushing ahead with the transformation of the traditional branch 33 Umpqua Bank in Oregon has turned its branches into community hubs 33 Barclays Bank has tailored its branches in response to its customers’ needs 34 Lloyds TSB’s redesign emphasizes the commitment of each branch to its local community 35 Helm Bank in Colombia is pioneering a multi-sensory approach to brand identity 36 Jyske Bank in Denmark has worked hard to create a welcoming atmosphere 37 Deutsche Bank’s Q110 ‘Bank of the Future’ offers a complete retailing experience 38 There can be risks in adopting a retail-led approach to branch design 39 Washington Mutual reverted to a more conventional layout following its takeover by JPMorgan Chase 40 Abbey abandoned its partnership with Costa Coffee after just a few years 41 There is some difference in opinion about the wisdom of abandoning traditional branch design 41 The view on branch design 41 Technology is helping to enrich the customer experience 42 Touchscreens facilitate a more intuitive interaction between bank and customer 42 Barclays Bank is pioneering the use of touchscreen technology in its flagship London Piccadilly branch 42 Umpqua Bank uses touchscreen technology to build customer engagement 43 Touchscreen technology can be used outside a branch to engage the interest of pedestrians 44 Using video links can help create a more personalized experience for customers 44 Umpqua Bank is experimenting with video links to help increase face-to-face contact 45 First Atlantic is also investing in video tellers to improve efficiency 45 ABN Amro is piloting unmanned branches where all communication is conducted remotely 46 There are potential downsides to the use of video technology 47 Increasing levels of automation are contributing to greater operational efficiency 47 BNP Paribas has replaced teller positions with multifunction ATMs in most of its branches 47 Garanti Bank in Turkey has made widespread use of self-service kiosks 47 Sparkassen in Germany has installed movable kiosks in some of its branches 48 Digital signage can help to boost product sales and reduce boredom while waiting 48 Digital signage is highly effective in engaging the attention of customers 49 Bank of America reduced perceived waiting times through the use of digital displays 49 Jyske Bank has put digital signage at the heart of its service proposition 49 Behind-the-scenes technology can also improve the customer experience 50 TD Bank in the US is speeding up transaction processing times through the use of technology 50 The view on the use of technology 51 Many banks view branch staff as being more vital than ever to their service propositions 51 Meeting-and-greeting helps to improve security 51 Changes in branch layout and technology have also necessitated a change in staff function 52 Banks could be doing more to promote product sales through their staff 52 The quality of branch staff has become a marketing tool for banks 52 Changing staff priorities means a change in recruitment criteria 53 A number of banks have placed a considerable investment in staff training 54 Umpqua Bank has placed great emphasis on the quality of service provided by its staff 54 TD Bank is moving towards offering specialist sales and advice in its branches 54 Barclays Bank has resurrected the branch manager 55 Branch opening hours are gradually becoming more customer-friendly 55 The view on the role of branch staff 56 Banks are taking an increasingly analytical approach to optimizing their branch networks 56 Branch network optimization provides a powerful analytical framework for assessing network performance 56 Banks prefer to open branches where there is the greatest number of potential customers 58 Branch location is an important determinant of choice of bank 58 Branch layouts are moving away from a standardized look to one that varies by location 58 The view on branch networks 59 The future of branch banking 60 The branch channel will continue to evolve 60 Branches remain the most effective channel for building relationships 60 Branches can help to target high-value segments 61 Customers want to access their banks through a variety of channels 62 Branches have a role to play in restoring trust and confidence in the banking industry 62 Fallout from the banking crisis may lead to further closures 63 Bank mergers could force more branch closures 63 The decades-long expansion in US bank branch numbers could come to an end 64 Banks with larger branch networks may outperform those with smaller networks 65 Banks must rethink the purpose of their branches 65 Banks need to improve the quality of the in-branch experience 66 APPENDIX 67 Supplementary data 67 Definitions 72 Digital signage 72 Self-service kiosks 72 Methodology 72 Further reading 72 Ask the analyst 73 Our Consultancy 73 Disclaimer 73 For more information please visit : http://www.aarkstore.com/reports/Branching-Out-Rebuilding-Value-in-the-Branch-Channel-17802.html Retrieved from “http://www.articlesbase.com/mortgage-articles/branching-out-rebuilding-value-in-the-branch-channel-market-research-report-on-aarkstore-enterpri-3427271.html” Continue reading →