Branch technology trends

Brent King’s book Banking 3.0 (released in 2013), made the case that banking is no longer a place you go, but something you do, largely a result of radical changes in technology and consumer behavior. Then, the “2015 Digital Banking Report” by DBR Media released in February 2015, predicted that four of the top five retail banking trends would have a technology focus.

Were those trends realized, and is technology in the driver’s seat when it comes to maximizing delivery channels that meet customer demands? It appears so. In BAI’s “A Look Ahead to U.S. Retail Banking in 2016,” released in December 2015, technology will further transform the landscape of traditional banking expectations and operations.

Self-serve kiosks — After an initial investment, self-service technology will lower transaction costs, potentially increasing profits. The BAI report predicts that local and regional banks that don’t embrace kiosks, either as a differentiation strategy or because they cannot afford them, will lose customers.

  • While kiosks will handle most transactions, roving in-branch bankers, specifically trained to capture high-value sales transactions, will be on hand to assist
  • Biometrics will recognize customers to provide a personalized experience, intuitively bringing up services and features the customer uses most
  • Interactive ATMs are already in use. For example, with the NCR APTRA™ Interactive Teller, a live teller takes remote control of the device while on video chat over its screen. FirstCapital Bank of Texas, North Shore Bank, which serves eastern Wisconsin and northern Illinois, and PCSB Bank, a family owned community bank in Southwest Iowa , are just a few banks that have installed APTRA in its lobbies and drive-thrus, and provide live interactive teller support for expanded hours, with some planning to expand the service to 24/7.

Mobile banking will double, then triple — a Javelin study reported than 25% of U.S. banking customers use a mobile device to access their account, and the BAI report predicts this will increase to 50% by the end of 2016 and 75% by the end of 2017. Even if browser-based banking transforms to offer the experience of mobile app-based banking, it will never offer the portability. Banks must invest in mobile.

New account openings — customers want to use mobile to open accounts, as long as banks provide a user-friendly process, secure verification of personal information and easy funding. It might work like this: the customer snaps a photo of his ID with his phone camera, enters his SSN, and the bank connects to a third party for verification in less than 30 seconds. The BAI report predicts that roughly 10% of accounts will be opened via a mobile device and that percentage will double, possibly triple, in 2017.

Asset growth at virtual banks — continued growth of mobile and anticipated higher interest rates will attract traditional banking customers to open a second account at a virtual bank, while younger customers may turn to virtual banks as they start their first banking relationship.

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