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Cause & Effect: If Banks Build It, Will Customers Come?
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Jason Weinick
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Jason Weinick,
User Rank: Apprentice
7/11/2014 | 12:04:49 PM
Touch Point Behavior by Demographic
Branches will no doubt have to recreate themselves to become an epicenter of intelligent cross-selling, but consider this.  Over 75% of mobile banking consumers are Generation Y and Generation X, who are likely the prime consumers to be sold profitable banking products.  If these consumers are migrating towards self-service channels, such as mobile remote deposit, there is a concern that the majority of in-branch consumers will be consumers who don't necessarily have a need for a mortgage or auto-loan.  Financial Institutions shouldn't consider touch points as competitors, but rather create a holistic view of reaching their consumers anywhere anytime.  I was recently reading an article written in 2006 which stated "As soon as someone provides us with a simple remote check deposit-capture service, we'll rarely set foot in a branch again."  Although branch openings have diminished over the years, 8 years after that article was written, the brick and mortar footprint remains strong.
Charlie Babcock
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Charlie Babcock,
User Rank: Apprentice
7/10/2014 | 10:09:45 PM
Going, going.... your local bank branch
We used to believe that account integrity depended on a small piece of pater, a check, being moved from the customer's possession into the bank. Now that transaction can be conducted logically and in a variety of logical ways over the air waves. Like the paper itself, the bricks and mortar of the bank will also fade in importance. (But I still like my branch.) 
Byurcan
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Byurcan,
User Rank: Author
7/10/2014 | 3:54:04 PM
Re: Brick and Mortar Anchor?
Like me. I've been to a bank branch 4 times this week.
KBurger
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KBurger,
User Rank: Strategist
7/10/2014 | 3:48:07 PM
Re: Brick and Mortar Anchor?
We probably will see more efforts to make the branch a place where customers can become more digital. I've heard a number of experts posit that branches are going to evolve into place focused more on consultation and education, less on transactions. So I don't think it will just be reducing the number of branches (which definitely has to happen there are way too many), but also changing the function of the branch. Of course, given how pendulums swing, there probably will be someone who comes along and thinks there's an opportunity for a completely analog/non-digital branch, to cater to those people who can't or won't do digital.
Byurcan
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Byurcan,
User Rank: Author
7/10/2014 | 9:41:09 AM
Re: Brick and Mortar Anchor?
True, though branches do still serve a very important purpose. It's just that banks probably don't need as many now, the massive branch expansion iof the 90s/early 2000s needs to be adjusted for now.
ChrisMurphy
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ChrisMurphy,
User Rank: Apprentice
7/10/2014 | 9:25:44 AM
Brick and Mortar Anchor?
There's no doubt that banks need rich digital channels to attract and keep their customers. But if they don't ditch some of the legacy brick-and-mortar costs, it seems like more costs to get the same profits. 


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