Branch transformation strategy for maximum efficiency

There are numerous reasons for a financial institution to reconsider its branch transformation strategy, including consumers who prefer digital experiences. Costs are rising. Non-bank rivalry. Even a global health crisis has made people wary of direct contact.

As branch traffic declines, financial institutions are looking for ways to make their physical presence more relevant. Those who are successful are refining their services and redesigning the physical layout of their locations to better address the changing needs of their customers.

Financial institutions can use new, connected technologies to expand their services, create better customer experiences, and reinvent the branch as a hub for financial advice and new interactions.

To meet the needs of today’s changing consumers, each financial institution must develop its own branch transformation strategy that incorporates a combination of these strategies, reflecting their objectives and institutional culture, in an ongoing program.

What is Branch Transformation?

Branch Transformation is the transition from traditional branch banking to a customer-centric, retail-oriented, multi-channel, technologically enhanced banking experience. With difficult financial markets and regulations, fierce competition, demanding customers, and new technology, financial institutions are realizing they must make significant changes now or risk becoming obsolete.

Top 5 branch transformation strategies for maximum efficiency

1. Business model and management processes

Banks require a standardized framework to collect key performance data and create a holistic view of their operations in order to make effective decisions about how to evolve their branch networks.

Banks require visibility and actionable data on how employees spend their time, what activities they engage in, and how they interact with customers. They can then connect the data to end-to-end processes that are in line with corporate strategy and customer engagement objectives. Productivity, service deadlines, quality, financials, and employee performance and satisfaction could all be measured and prioritized.

2. Omnichannel

Banks must provide branch staff and all other customer-facing employees with a 360-degree view of customer history, inquiry statuses, and overall customer health scores in order to provide a more personalized, consistent experience across all customer touchpoints.

Employees are empowered to follow up on a previous interaction, reduce customer friction, and increase sales opportunities by having a comprehensive view of this data. Managers can monitor employee use of technology behind the scenes to better understand the activities and processes performed and make changes as needed to improve customer experience.

3. Customer engagement

Banks must engage customers and deepen relationships beyond customer experience or satisfaction. Capturing customer sentiments, behaviors, and insights at the transaction level during a branch visit as part of the customer journey is more important than ever to help employees understand each customer segment and the impact their behavior has on the customer.

4. Branch distribution/layout

According to surveys, one of the most important factors influencing customers’ choice of a bank is the location of branches near their home or workplace. Even as financial institutions reduce the size of their branch networks, as previously stated, they must continue to test new formats while also making changes to existing older branches.

Minor renovations can be made to older and larger branches to remove excess teller windows to make room for new technology or to add comfortable seating areas for customers to meet with branch staff. The real challenge will be to maintain the appropriate level of “local presence” for both existing and new customers while keeping branch expenses in check.

5. Marketing and sales

Gaining market share and increasing revenue are constant goals for most financial institutions. As a result, each organization’s branch transformation strategy should include not only revenue planning activities but also tools to help measure whether revenue targets are being met and where additional changes may be required.

Marketing is critical in communicating the value of branch transformation changes to employees, as well as in educating customers on how the bank can help them manage their financial lives in various ways across all interaction channels. Branch sales efforts should be coordinated with the rest of the organization, and branch sales processes may need to be updated.

Conclusion

To stay competitive and meet the needs of today’s changing consumers, financial institutions need to employ a branch transformation strategy that allows them to be nimble and responsive. At the heart of this strategy should be technologies that empower employees to serve customers where they are, when they need it. 

If you’re looking for ways to update your infrastructure, contact SmartOSC Fintech today. Our team can help you create a plan that will future-proof your business and keep you ahead of the curve. Are you ready for the future of financial institutions?