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  • user 4:21 pm on April 26, 2017 Permalink | Reply
    Tags: , Bank, , branches—and, contact—are, , , , ,   

    Why bank branches—and human contact—are not going away any time soon 

    For years, we’ve heard people proclaiming the demise of the bricks-and-mortar branch, supposedly swept by customers’ mass-migration to online and—increasingly—mobile alternatives. But as our latest UK banking consumer survey—Beyond Banking—confirms, there’s still plenty of life in the bank branch. Put simply, customers still want to be able to visit branches and experience the face-to-face contact they enable.

    In fact, a major theme of our findings is how highly customers still value interaction, and how much they want to have a conversation with a real live person about their major financial decisions. What’s more, this desire isn’t limited to older people. Quite the reverse: As our research demonstrates, the younger you are, the more likely you are to be a regular user of a branch.

    Given that this trend is coinciding in with an ongoing shift by younger consumers towards more innovative channels—the likes of wearables, social media and instant messaging—it’s possible that the continued strong usage of branches is a transitory effect. But our study gives no indication of that. And the findings will certainly give pause for thought as they plan out future strategies for their physical branch networks.

    So, what does the research tell us? As Figure 1 shows, while use of mobile banking services is surging, branch usage by all customers remains remarkably consistent year on year—and indeed in 2016 edged up to its highest level since this research began in 2010.

    Figure 1: How often do you use the following? (% Regular use)[1]

    A breakdown of the 2016 findings by age (see Figure 2) reveals what many might regard as a surprising outcome—with millennials being by far the heaviest users of branches, tapering down to OAPs as the lightest. While this age profile is probably affected by factors such as millennials’ higher numbers of financial transactions and the fact that it’s easier for them to physically get to branches, the correlation between youth and higher branch usage is clear and undeniable.

    Figure 2: How often do you use the following? (% Regular use)[2]

    And what are customers using branches for? The answer—as Figure 3 shows—is activities like seeking advice, accessing services and fixing issues. Indeed, branches far outstrip all other channels for advice and service access.

    Figure 3: How often do you use the following for each type of service? (% Regular use)[3]

    What’s more, the use of branches for research and advice is becoming more frequent, with a significant step-up since last year in monthly interactions for these activities (Figure 4). And a comparison with historic data from previous years shows that self-service initiatives in branches are gaining traction, underlining their evolving role as service hubs.

    Figure 4: How often do you use the following for each type of service? (% Regular use)[4]

    All of this leads us to the million-dollar question: What kind of banking model do customers actually want? The answer, as Figure 5 shows, is a blend of physical and digital channels—a proposition they find much more attractive than a pure digital bank with no branches.

    Figure 5: Would you be interested in using the following banking models?[5]

    The message is clear: Banks should create strategies that accept and optimise branches’ ongoing future role, while also looking to harness ongoing digital innovation to deliver better service experiences at lower cost. But the shift towards computer-generated services for customers cannot be at the expense of access to human services at their local branch.

    In my next blog on our UK banking consumer survey, I’m to look at the findings on a key focus area for digital innovation in banking: so-called ‘-advice’. Stay tuned.

    [1-5] Source: UK findings of Accenture 2017 Global Banking Distribution & Marketing Consumer Study—Beyond Digital

    The post Why bank branches—and human contact—are not going away any time soon appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • user 12:18 am on April 17, 2017 Permalink | Reply
    Tags: Bank, , , , , ,   

    Breaking Banks: Starling Bank Wants to Be a Fintech ‘Hub’ 

    in the U.K. is building from scratch. But unlike other neo-, Starling sees its future as a of financial products, but not necessarily the generator of every product. The bank is making a series of important and innovative partnerships to provide the best services can offer, with the security that a bank [&;]
    Bank Innovation

     
  • user 3:52 am on April 12, 2017 Permalink | Reply
    Tags: , Bank, , , , , , ,   

    First Data Joins Silicon Valley Bank In Fintech Accelerator 

    and look for companies with Series A funding for their virtual program.
    Tom Groenfeldt – Financial Technology

     
  • user 12:19 pm on April 9, 2017 Permalink | Reply
    Tags: Bank, , Barrier, , , ,   

    Is Startup Culture A Barrier to Bank Partnerships? 

    Fintechs are becoming more entrenched into the financial ecosystem, with the majority of now firmly on the side of collaboration, rather than conflict. More than 80% of financial incumbents anticipate developing more with fintechs in the next five years, according to PwC’s 2017 Global Report. However, working with fintechs is nothing like [&;]
    Bank Innovation

     
  • user 4:46 pm on April 3, 2017 Permalink | Reply
    Tags: Bank, , , , phenomenal, , ,   

    Using digital to create a phenomenal bank salesforce 

    Microsoft’s Bill Gates knows a thing or two about . As part of his foundation’s education work, Gates has also learned a lot about how technology can improve the quality of schools. One of his observations is that “technology is just a tool. In terms of getting the kids working together and motivating them, the teacher is the most important … we will still need to make sure every student has an effective teacher, and every teacher gets the tools and support to be .”

    The same is true for banking. channels now allow most banking transactions to occur online anywhere and at any time—and at a much lower cost than face-to-face interactions in branches. Yet despite transgressions at a few retail , a human salesforce remains a critical asset in the fight to attract and retain customers.

    Accenture’s recent survey of nearly 33,000 consumers in 18 countries shows that two-thirds still want human interaction in financial services, especially to deal with complaints (68%) and get advice about complex products, such as mortgages (61%). While digital channels can effectively provide information, most are still a long way from providing the type of personalized advice and guidance that converts a complex and often ill-defined customer need into a meaningful action.

    Banks that want to compete and win against pure digital players need to differentiation and competitive advantage by investing to integrate their human salesforce and digital channels. The right digital tools and training can make sales people trusted problem solvers, brand ambassadors and advisors who can orchestrate the best combination of in-person and online banking.

    Apple is recognized for product innovation and design, but it’s also mastered the art of physical retailing, creating spaces where customers can both interact with products and also receive tailored, personal sales advice and on-the-spot problem resolution from engaged and well-trained staff. Those interactions have now become as essential to the Apple brand as the features and functionality of the products they sell, and that is why Apple stores have the highest sales per square foot of any major retailer in the US, including Tiffany’s.

    To create a phenomenal, highly productive salesforce, banks need to adopt a markedly different talent strategy that focuses on developing new digital and social traits.

    An enthusiastic, friendly and welcoming attitude will still be important, but bank executives we spoke to say that the top two attributes banking employees will need in the future are proficiency with digital technologies and an ability to quickly learn new skills.

    To enable this workforce, banks will also need to equip sales people with relevant and simple-to-use digital tools that will help them create truly personalized and multi-channel customer interactions. As the digital customer experience has improved, customers have noticed that branch staff often have less access to information than the customers themselves do on their phones, hence their satisfaction with ‘seamless omni-channel’ banking has been in steep decline over the last couple of years.

    To be phenomenal teachers and advisors, bank staff will need to be enabled with not only the latest technology and most up-to-date information, but also use automation to liberate themselves from repetitive back-end tasks, so they can focus on the quality and impact of their interactions with customers. They also need to work within a sales culture that values the quality of interactions and the emotional connection with customers, not just the quantity of sales made. Just as in an Apple store, bank employees need to be committed to evangelizing the digital revolution, while still recognizing the unique value added by human interactions. As technology continues to improve, the number of human interactions will continue to decline, but the value of each human touchpoint to the bank’s brand will continue to increase.

    In a world where many bank staff are worried about branch closures and the migration of sales and service to digital channels, the role of leaders is to convince them that they can be phenomenal—and to provide the training, tools and incentives to lead the digital revolution in banking, not be victims of it.

    To find out more, read the recent Efma and Accenture report, The banking sales force—now what?, which summarizes the outcomes of three interactive think-tank meetings with senior bank executives.

    The post Using digital to create a phenomenal bank salesforce appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • user 1:50 am on April 3, 2017 Permalink | Reply
    Tags: Bank, , , , ,   

    Aim bank distribution and marketing where customers are going to be 

    Good baseball center fielders can consistently catch a line drive over second base. They do that by instinctively running to a spot that allows them to intercept a ball that is moving at a fixed speed in pretty much a straight line. would love to be able to use that same technique to predict and meet customer needs. Just predict where the customer is , and then stand underneath that spot to catch the mortgage application or the account opening. Unfortunately, customer needs in banking are no longer behaving like line drives. Instead, they’re behaving like knuckleball pitches that move fast, but in erratic and unpredictable directions.

    Read the full report

    Accenture recently examined rapidly changing consumer expectations in banking in our 2017 Global Distribution & Marketing Consumer Study, which gathered the views of more than 33,000 across 18 markets. The results were surprising. For example, customers’ biggest driver of loyalty now is their willingness to trust banks to protect their personal data. Transactional trust used to be consistently high across the banking industry, but now consumers are telling us that it is a point of competitive differentiation, so cyber security is no longer just a hygiene factor, it’s a customer acquisition tool. The survey also showed a paradox around attitudes to branches. While only a minority of customers now cite branches as their top driver of selection and retention, over 80 percent of them (including the vast majority of millennials) still want the option of visiting a branch—an option that involves high operating costs for the bank if it isn’t a primary driver of account acquisition—so banks need to find the ‘branch lite’ sweet spot that delivers the option value without fatally undermining their economics.

    One conclusion to draw is that customer expectations and needs in banking are far more malleable than they used to be when you had well-established industry norms like the s-curve describing the relationship between branch share and deposit share in a local market. Their experiences on digital platforms like Facebook, Amazon, Uber and Google are shaping what they expect from their bank and this highly iterative process is leading to rapidly changing priorities. To track and capture these customers, the implication is that banks are going to need to stop trying to act like center fielders and start behaving more like echo-locating bats. Bats’ flawless adaptive behaviours, including ultrasonic pulses, agile flight and head-aim control, allow them to detect and capture free-flying insects in incredibly narrow time windows. Likewise, banks need to understand not just where customers are, but also how to jink and weave to zero in on what they are going to need and when they are going to need it.

    While ideally banks should use complete customer genomes to track individual behaviours, our research pointed to three distinct consumer personas—Nomads, Hunters and Quality Seekers—with broadly similar needs that banks can use to shape offerings and tactics. Within these broad personas there will still be a lot of insects and knuckleballs that are moving erratically, but at least banks will be in the right part of the ballpark to make a play on the customer with an offer or piece of advice that has a higher probability of being timely and relevant.

    I invite you to read the key 2017 Global & Marketing Consumer Study findings in the full report, Beyond Digital: How Can Banks Meet Customer Demands? It also details the three consumer personas and implications for banks as they seek to understand—and market to—today’s banking consumers.

    The post Aim bank distribution and marketing where customers are going to be appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • user 12:18 am on March 30, 2017 Permalink | Reply
    Tags: Bank, , , , Engaged, ,   

    Data Can Build Engaged Bank Customers, If You Pick the Right Set 

    How should FIs leverage  to better engage ? Well, according to Cardlytics President and co-founder Lynne Laube, you follow the money. “Three households who look identical demographically&;are going to get the exact same credit offer,” said Laube at the DataDisrupt conference today. “They look very different when you understand where and how they are spending [&8230;]
    Bank Innovation

     
  • user 12:19 am on March 7, 2017 Permalink | Reply
    Tags: , , Bank, , , ,   

    Kasisto Announces KAI Insights at Bank Innovation 2017 

    wants to make proactivity the norm when it comes to banking. The conversational AI company today announced KAI , a data-driven service that will be integrated into its KAI for Banking platform, during the  event taking place in San Jose, Calif. The integration of KAI Insights into this platform will allow [&;]
    Bank Innovation

     
  • user 12:18 pm on March 6, 2017 Permalink | Reply
    Tags: Bank, , , Relaunches   

    Bank Innovation Relaunches 

    Today,  releases its most significant redesign and relaunch since the site initially dropped online in 2009. We hope you love the new Bank Innovation. When we started Bank Innovation, while the crosswinds of the credit crisis were still swirling, we were the lone voice for innovation at . I recall introducing Bank Innovation to [&;]
    Bank Innovation

     
  • user 12:18 am on February 21, 2017 Permalink | Reply
    Tags: Bank, , , , , ,   

    Starling Bank Integrates API into Google Home [VIDEO] 

    Mobile-first released a today showing off an integration of its API with a device. The feature is not available for Starling customers yet, though it&;s coming, according to Megan Caywood, chief platform officer at Starling Bank.  Caywood told Bank Innovation: Voice features are primarily goingRead More
    Bank Innovation

     
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