Technology Helps Keep Branches Vital

CUNA’s E-Scan online research portal
April 29, 2011 | COMMENTS

Even with branch traffic reportedly on a downward trend, 43% of consumers are still labeled as branch-centric, according to Novarica research. And financial institutions still choose to make investments in their branches, including renovations and technological improvements that will help them remain vital to consumers. 

Of those who are branch users, Novarica further breaks such consumers into four categories—obsessive service addicts, deliberate cash managers, struggling average consumers, and branch traditionalists—according to Bank Systems & Technology. 

“One reason people interact with the branch is they want our people and our expertise,” says Alan Depencier of Royal Bank of Canada. Historically, the branch has been a transaction channel, notes Depencier, who sees the branch of the future as a place where people can shop, interact with staff, learn more about financial services, and create financial plans.

Another reason branches remain relevant is that members and customers choose branches over other service options when complicated issues arise. About 70% of technology-driven Generation Y say they prefer a branch to finalize complex financial matters such as investment decisions, according to Cisco research. Consumers like the opportunity to personally interact with trusted experts when making challenging financial choices that could affect them for a lifetime. 

Creating an experience that’s supportive of those conversations and relationships is vital, and this is where technological innovation comes in. As institutions engage consumers in complicated financial transactions, it’s important to use the time wisely.

Technology can help to facilitate positive interaction and keep users informed, as indicated by the following three trends.

1. Microsoft Surface. This interactive technology tool, which resembles a small table, incorporates touch screen technology to draw in the user. Infrared cameras allow users to participate in information exchange—they can “ask” for information by simply touching or placing an object on the Surface. Various apps are available, and the device will present relevant data on investment strategies or home buying, for instance, depending on the user’s needs. The user may then seek branch staff expertise to help meet specific needs.

2. Videoconferencing. This technology is becoming useful as a way to connect consumers with experts who might not be available at a given branch. Video collaboration also provides cost-saving opportunities as specialized staff becomes more widely available for consultation with customers who might live far away.

3. Digital signage. This technology can help deliver a more personalized experience as branches create messages relevant to a specific geographical audience. Digital signage also offers a chance to save paper and personalize communications. (“Digital Signage Attracts Attention,” CU E-Scan Newsletter, escan.cuna.org)