Myth: Branch is core for Relationship Management

Reality: Bank employee is core for Relationship Management

Explanation: Customers do not have relationships with a physical building. This may have been the case to a certain extent 50 years ago, but today, customers value the person who owns their problem and ensure their satisfaction. Today customers are perfectly willing to take on self service activities, because its convenient, and provides a measure of control. Thats why they like and use online banking, and ATM’s.

But relationship management is a person, and customers just want access to that person through the channel of their choice, not just by walking in to, or phoning the branch.

Myth: Branch is core for Sales

Reality: Customer need is core for Sales

Explanation: The origin of a sale lies in the customer expressing a need. By suggesting that the branch is core, we are implying that we force the customer to visit the branch. The reality broadens that equation, and makes in incumbent on the Bank to ensure that they are ready to accept the customers expressed need at any point of interaction. Majority of interactions take place on Online Banking, and ATM’s so that’s where banks have to be ready for the customer.

Then the request/ application/ order can be suitably routed to the branch personnel for fulfilment.

Implications:

Banks must remember where their customers actually are if they are to generate loyalty through satisfactory service. Generally 30 – 45% of customers are using online bnaking today, and 80% + are using ATM’s.

By limiting thinking to stating that “Branches are core” flies in the face of what customers are telling us by their changed behaviours. To quote Hugh, albeit in a slightly different context – “change is not death, to ignore change is death”