The Branch in the Banking Digital Age

DIGITAL TRANSFORMATION

The Branch in the Banking Digital Age

GFT Consulting IT SLU

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Today

Source: TSB. Why Branches Matter in the Digital Age. Feb 2015

Bank’s channel usage

Remote channels do not support transactions where physical components

are involved (cash, coins, bank checks, bills, foreign currency…)

The acquisition of new clients still happens in the 80% of cases in the

branch

New Clients Onboarding and Contract Opening processes still

requires to visit the branch at some process step

90% of customer prefer face-to-face advice for complex

operations

Older, some other customers, still look for human interaction and confidence with their bank branch. Personal treatment

Multiple Sources: Capgemini - The Future of Bank Branches, Coordinating Physical with Digital. PwC, Rebooting the branch: Reinventing branch banking in a multi-channel, global environment.

Digital Technologies will Accelerate the Branch Transformation, but will not make them extinct because the costumer cares…

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Digital Banking relationship model

Physical Branch

Virtual Branch

(formerly, online channels)

Branch of the future.

Client

Digital Client Traditional Client

Clients that can and want to interact with the bank through the digital channels …

Clients that do not want or do not know interact

digitally

… but for any reason they must complete the interaction in the

physical branch

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Branch of the future. Pillars

Client

Physical Components Client Onboarding and

Contract Opening

Personal Treatment Complex Operations

Client Acquisition Physical Branch

Spaces Accessibility Interaction

Physical Items Human interaction

THE PHYSICAL BRANCH

Physical Branch of the future. Pillars

The Branch is there, where and when the client needs it

Accessibility

The client can satisfy his needs, digitally and/or physically

Interaction

Making the branch visit a pleasant experience, not a binding obligation

Spaces

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Physical Branch of the future. Pillars

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Accessibility

§  Are my branches in the right place? §  Are the opening hours the most convenient for my clients? §  Can the client access to the branch from multiple digital and physical points §  Is the staff ready to understand the profile of clients attended in each branch?. Are the

decision making processes behind the branch ready to understand the specific client profile needs?

§  Can I track the usage of by physical branch network and improve the pillars (feedback)?

ü  Street traffic measurement & street conversion (% of street traffic visiting the branch)

ü  Real time footfall counting: understand how many people visit the branch and when

ü  Customer dwell times and branch heat maps

ü  Transaction execution statistics (all channels including AIO and ATM)

ü  Client profile

-  Make decisions about branch location, staff sizing, staff profile, opening hours, decision processes, etc…

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Experience feedback

Interactions

Façade

Secure delivery Boxes

Wifi

Battery Charge & other facilities

ATM 2.0

Welcome Traffic counting

Queue Management

AIO Self-service & assisted

Teller

The shop

Start Digital Transactions

Battery Charge

Onsite advice

Remote advice

Knowledge

Totem informative

Secure delivery Boxes

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Welcome

Assisted and Self-Service

Façade

Secure delivery boxes

Face-to-face advice

Mobility of employees

Modular design

Knowledge area

Video conferencing

Interactive touch screens Waiting area

Spaces

! Extended Opening Hours "

Physical Branch types

11

1. Flagship Branch 2. Standard Branch

3. Light Branch 4. Mobile Branch

q  Brand image reinforcement q  Lab of new products, services and

digital solutions q  Full service to clients:

q  Self-service (24x7) q  Assisted (12x5) q  Face-to-face Financial Advice (8x5)

q  Conferences and training rooms for clients and employees

q  Shared spaces where organize external events

q  Full service to clients: q  Self-service (24x7) q  Assisted (12x5) q  Face-to-Face Financial

Advice (8x5) q  Conferences and training rooms for

clients and employees q  Shared spaces where organize

external events

q  Full service to clients: q  Self-service (24x7) q  Assisted (8x5) q  Remote Financial Advice

(8x5) (videoconference) q  Operated only by one employee (non-

cashier)

q  Self-Service only (24x7) q  “Easy to move”. Capacity to be

temporally installed in events (e.g. congresses, touristic zones in summer, etc..) or in busy areas of big cities (airports, train stations, business parks…)

q  Located in shared spaces with third companies strategically selected

Current traditional branches will evolve to 4 models of new branches, customer and market characteristics will determine the perfect fit of branch-type mix for each bank

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Physical Branch Governance: Dashboard

Counting Performance Feedback

•  Store Footfall Counting (clients/no clients/total)

•  Street Traffic Counting

•  Street conversion (% of traffic visiting the branch)

•  Transaction counting (total, self-service, assisted and traditional)

•  Queries served by digital devices (façade and totem informative)

•  Transaction conversion (% transaction/visits)

•  Queries conversion (%queries served/visits)

•  Queue indicators (num, waiting time àmax/min/average)

•  Queries served by digital devices (façade and totem informative)

•  Customer dwell times and branch heat maps

•  Ranking of queries served (total, by type, by product or service,…)

•  Customer Feedback

•  Satisfaction measurement

metrics + branch internal IT metrics Compound dashboard:

THE VIRTUAL BRANCH

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Virtual Branch

§  The Virtual Branch is the evolution of the online channels, embedding on them the capacity of interaction with a Remote Advisor (Human Interaction).

§  Used for/by Digital Transactions/Clients

§  Accessible by mobile (& wearables) , internet, TV, immersive channels in shops, etc…and from the physical branch by multiple devices, allowing clients to start a transaction digitally and finalize it physically.

Digital Transaction Digital-Physical Transaction Start contract new card Attach required data Sign new contract

Sign-up process ( Hassle-free actions)

Sign-up process ( Hassle-free actions)

Biometric Sign (Manuscript)

Step 1 : Digital at Home Step 2 : Physical in the branch

Start contract new card Attach required data Sign new contract

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Digital branch services and devices (1/3)

Client Relationship Manager

DEVICES & SERVICES OBJECTIVES

Teller

Advanced video conference devices

All-in-one (AIO) device

Assistant

Knowledge area

Secure deliveryboxes

To provide personalised face-to-face advice to the client.

Face-to-face on-demand execution of transactions on behalf of the client, including the ones that involve cash.

“Near face-to-face” personalised advice to the clients. Allows banks to provide on-site advice to clients regarding very specialised matters without having specialised experts in all the bank branches.

Allow clients (only) to execute the 100% of the transactions available in a bank branch in self-service or assisted mode (including transactions that involve cash, bank cheques, etc).

Support and train clients using the AIO devices. The objective is to train clients to using the AIO in self-service mode.

Pleasant place where to schedule presentation of new services, new technological devices or new financial products, increasing the client’s investment maturity. Divulgation of corporate social responsibility activities and invite clients (and no clients) to collaborate.

Include the branch in the ecommerce chain of value as secure delivery agent where to receive 24x7 and securely the goods purchased. 24x7 secure delivery of financial items like foreign currency purchased by internet or mobile.

Easy sell and distribution of packaged financial services or third party goods (or combinations) like mobile terminals with the bank applications already installed and ready to be used after activation.

Allow the mobility of the bank employees within the branch with a tablet. Allow clients to start operations in the AIO or ATM in the mobile and complete them in the terminal (pick up the cash).

The Shop

Connectivity

Façade & Informative Totems

Informative screens (tactile, Kinect Tech) with media contents related to detailed description of products, services, fees, etc. Capability of print the flyers or to send them by email to the client’s email address or mobile.

Device / battery charge

Push clients and non clients to visit the branch. Coffee facilities, tablets preconfigured to perform digital transactions and queries, and other amenities will invite clients to visit the branch.

ATM 2.0Continue offering services to the non clients.Advanced ATMs should be operated without card (QR codes, NFC, Biometrics etc), to allow videoconference for support.

Beacons and smart cams

To measure the customer traffic in front and within the branch.Identify the client that access the branch and have his contact history in the screen when the client is welcomed by the employee.

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Teller



Assistant

Knowledge area











The Shop

Connectivity








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Teller



Assistant

Knowledge area











The Shop

Connectivity








Thank you GFT IT Consulting Jaume González Banking digital transformation Avda. Alcalde Barnils 69-71 70567 Sant Cuga del Valles (Barcelona) T +34 93 563 92 36 [email protected]

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The Branch in the Banking Digital Age