Nice catchy headline here from Silicon.com but in the small print they make the real point that while locations are important, it is even more a priority critical to re-invent the operation of those locations, as well as getting the right balance of branch footprint.

Internet can’t kill bank branch, says Halifax – Financial Services – Breaking Business and Technology News at silicon.com

Rumours of the death of the bank branch at the hands of internet banking have been “greatly exaggerated”, according to Halifax.

They make the key point here.  The linked article goes on to talk about some future technologies in the branch of the future.  Its worth understanding why this is required, because that helps us define which technology solutions are required.  Refer to background piece below on the changes in the banking channel environment over the last 5 years..

But, as around half of a bank’s customers will visit the branch at least once per month, some banks are also investing heavily in new technology in their branches to improve customer service.

Background:

One simple fact – basic financial transactions in branches are dropping like a stone.  Over the past 5 years, customer transactions at the typical bank, have grown.  Customers have leapt to new channels with enthusiasm, and the typical transaction count for the average customer is up significantly.  This is driven by convenience, and flat rate banking plans that permit high or unlimited banking.

Where it gets interesting is in the distribution of transactions within the channels.  Basic transactions have dropped in telephone banking, branches, and ABM’s  They have increased significantly in online banking, and Direct payments (Direct Electronic Funds Transfer, Direct Debit, Direct Credit).

Branch implications:

1. Staffing distribution is different – more sales people, and less transactional tellers
2. Staffing competencies are different – greater focus on advice based knowledge type capabilities
3. Branch technology requirements are different – knowledge workers expect and need simpler graphic display technologies, not the old green screens that are typical in banks.
4. Business processes need to be re-tooled to reflect the different nature of conversations that take place in the branch, ie cross sell, upsell.
5. Technology changes are required to reflect the different conversations, and different business processes.