Years ago, you went to the record store to purchase an album of music. It was curated by the artist, and maybe you liked two or three songs (unless it was Michael Jackson). In 2003, Apple Music was launched, and it soon became popular to purchase individual songs for a mere $0.99 each. However, it took work figuring out which songs to purchase and so by 2015; more people streamed music than downloaded songs. Now you go to YouTube, Spotify, Pandora, SoundCloud, Google or Amazon and simply listen to either their curated playlist or choose one from your friends.
Tag: Channel Delivery
If your ATMs are getting old and you are thinking about replacing them or if you have a branch transformation strategy that entails restructuring to a more cost-effective physical delivery platform, going to an interactive/video teller machine (ITMs) must be a consideration. This isn’t an easy decision, especially when there are few banks that can make a clear case for an ITM, but in this article, we take a look at the strategy and economics of what a successful execution looks like.
Some banks make heavy use of personal bankers under the belief that having a dedicated person to help with problems would make a difference in the customer experience. Up until this month, we believed this notion. We were also jealous of other banks that use a personal banker model. A survey we conducted last week shows that approximately 22.4% of bank customers either have a personal banker assigned to them or have a banker that they have selected that they use as a personal banker. However, the belief that a personal banker helps customer satisfaction may be misplaced.
Years ago we discovered that most bank customers don’t specifically need a physical branch they just want the comfort of knowing they CAN go to a branch. The difference is subtle but important for banks looking to evolve their channel delivery. Over the past eight months, we have learned from focus groups and experiments that what customers want above all else, is a private banker.
Banks have a variety of options to deliver their products and services – branches, call centers, mobile, third-parties, social media, etc. “Omnichannel” has been a popular buzzword for a while with the prevailing concept that banks need to provide all channels as customers want to choose which channel works best for them. We think this is the wrong way of looking at the challenge and that banks need to take a more active role in the long-term planning of their portfolio of channel delivery options.
In branch banking, there was always the dilemma in gathering customers. The number of customers a branch would attract was a mathematical function based on location of the nearest competing branch, services/products, brand and price. All things being equal, customers tend to choose the branch that is the closest. Lower the price of a product, increase the brand value (marketing) or offer some unique services/products, and a branch could pull from a wider service area and increase market share.
Surpassing Commerce Bank (NJ) almost a decade ago, Umpqua is now recognized as a leader in providing one of the best branch banking experiences in the world. Customers and employees delight in delivering a superior financially-oriented experience that is unsurpassed by most retail outlets let alone banks. In fact, bankers come from all over (we recently met one from Russia that last time we stopped into a branch) just to see the experience firsthand.
Here is something that most banks overlook on social media – what will start off as a marketing effort will evolve into public relations and then morph into a customer service channel. This is a natural evolution that most banks should realize upfront before starting or expanding social media. If you are not ready for this, think twice before going down the social media road as our opinion, a halfhearted social media attempt is worse than no social media presence at all.
JP Morgan Chase’s new branch in the Texas Medical Center in Houston is special because of what is not in it – teller stations. Instead of a teller line, the new branch features an express banking kiosk or “EBK.” Basically a giant 21.5 inch iPad that customers can swipe, point and click to dispense cash in increments of $1, make deposits, pay bills, withdrawal up to $2,000 and even issue a new, permanent debit card.
PNC is underscoring the latest trend in banking of going to lower cost, more flexible branch foot prints. The Bank is experimenting with a 'pop-up' branch located in Chicago after they experimented with a similar structure in Atlanta. The Chicago location opened today and plans to be there for three months before moving. The pop-up structure not only helps build the bank’s brand as a forward thinking bank, but allows an inexpensive way to open accounts, demo new products, talk about consumer lending and garner feedback from the area on if a future branch makes sense.