A New Bank Operating Model for a New Consumer

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In the midst of bank branch closure programmes, it’s certainly no surprise that CACI have today released data to show that branch visits by retail banking customers have fallen dramatically since the rise and rise of mobile banking and are expected to fall off a cliff into oblivion by 2022.

But are these customers happy with the services that are available to them today? Plenty of other research suggests not.

 

NEW BANK OPERATING MODEL

Banks must continue along the path of finding a new bank operating model in order to fully and quickly embrace new technology. An effective digital strategy will keep their customers happy enough to largely avoid the branch. And as the CMA have noted, this must start with things like eKYC: mobile account opening, mobile mortgage applications and so on.

 

DORMANT DIGITAL TRANSFORMATION NOT GOOD ENOUGH

In order to achieve these dramatic new ways of working, digital transformation must be brought out of its almost-dormant state.Core infrastructures in banks are screaming at the pace of change and incapable of taking on the challenge of being the hub of all digital services. These platforms must be left to ‘deliver the data’ with new services added on in the digital periphery. Technologists must work in cross-functional teams to design, deliver and re-iterate quickly and to do this requires them to pilot on a production-ready platform.

 

COHESION BETWEEN DIFFERENT METHODS OF SERVICE

That said, branches and customer call centres cannot be ignored altogether and must remain a shopfront for customer service excellence, matching services that are available digitally. There are many digital tactics, such as in-app messaging with the branch, which can help to be a slick crossover point.

Banks face a huge challenge in providing service in every desired form to standards that are constantly being upgraded by available technology and the answer doesn’t lie in doing things the same way.

Anna Bennett

Author: Anna Bennett

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