The Right Way to Balance Digital and Branch Banking

Read the original full article from the Financial Brand here.

Here is a brief summary of the article:

• Many financial institutions aim to become “mobile-first” while reducing costs by trimming their branch systems.
• The risk is that they could lose opportunities to broaden customer relationships and make it easier for competitors to gain customers whose only connection to their primary financial institution is a smartphone.
• Digital banking increasingly handles everyday banking transactions, but the branch remains a pivotal element in sustaining and retaining customers.
• Banks need to rethink the branch’s role in their ecosystem and how they can drive more relevant engagement in branches with advisors.
• Lacroix’s study reveals that branches are an under-leveraged opportunity for long-term growth for traditional financial institutions.
• 60% of supposedly mobile-only customers visit a branch, with 18% visiting at least once a week.
• 39% said they would visit branches more often if banking hours were extended.
• Banks need to handle branch closures with empathy for both employees and customers.
• Managers of new branches should welcome customers aboard, thanking them for their business to retain customers who want empathy from their bank’s people, even those who are “mobile-first.”