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Banks Don't Have Much Time To Embrace Digital Model
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Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
11/19/2013 | 12:48:29 PM
re: Banks Don't Have Much Time To Embrace Digital Model
Even a small community bank has a wealth of information on its customers, as well as access to vast amounts of (free) data on the web. A smaller bank could move very fast by embracing big data analytics and engage with customers in the way their larger banking peers could only dream of. I have a feeling we will be hearing some pretty innovative community bank/big data stories in 2014-15.
Steven Cavanaugh
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Steven Cavanaugh,
User Rank: Apprentice
11/19/2013 | 1:35:47 AM
re: Banks Don't Have Much Time To Embrace Digital Model
I think a lot of consumers have opted for smaller, community banks for exactly that reason. They want their bank to understand their needs, not to be just a number. But as even community banks acquire more customers and get busier, it becomes impossible to give clients that small banking relationship feel. Only by embracing Big Data can a bank anticipate and accommodate their customer's needs in a way that a small bank from 20 years ago could.
IvySchmerken
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IvySchmerken,
User Rank: Author
11/15/2013 | 4:30:51 PM
re: Banks Don't Have Much Time To Embrace Digital Model
I agree banks should embrace the digital model, but still should support the personal, customer service interactions that breed trust and loyalty from customers. Trust goes deeper than offering a mobile app or an online channel. Customers expect the digital channels but they want the human connection too.
KBurger
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KBurger,
User Rank: Author
11/15/2013 | 2:16:49 PM
re: Banks Don't Have Much Time To Embrace Digital Model
Thanks for your comments. Maybe part of the story is that the branch will continue to exist (although not so many of them) but it will be more of a live "portal" where a variety of mainly NOT bank transactional functions can be handled -- eg, financial education around not just banking but other services such as insurance (maybe via kiosks, enhanced ATMs or telepresence). It will be more resource center/facilitator, perhaps. And of course what goes on in the branch will be increasingly digital, again through use of tablets, ATMs, video, etc. Teller is an entry-level job for many young people -- maybe it actually will evolve into something cool and digital-focused & the promise of cross-selling in the brance finally could be realized.
KBurger
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KBurger,
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11/15/2013 | 2:11:39 PM
re: Banks Don't Have Much Time To Embrace Digital Model
So I see on Finextra this morning "Barclays is set to axe 1700 customer-facing jobs from its branch network over the next year, citing the rise of new customer channels, particularly mobile banking." This can be viewed as an example of what the study outlines. What remains to be seen, however, is whether these cuts are viewed as efficiency, cost savings, operational streamlining, etc. -- which, according to the Accenture study is kind of missing the point -- or as part of a rethinking of the whole delivery & engagement model. The shift to digital channels doesn't mean customers want less service, if anything they want more (and more customized) service. As you point out, that trust & loyalty is critical and if anything the shift from branch to digital really raises the stakes on that.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
11/15/2013 | 11:23:22 AM
re: Banks Don't Have Much Time To Embrace Digital Model
Like most people, I value having a local bank branch in my community and it is one of the reasons why I selected the bank. However, the last time I was in the branch was 3 years ago to sign mortgage paperwork that was 99.999% completed online.

I'm sure this is the typical experience for most customers as well...the branch needs to be close, although we never go there!
MarkJ421
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MarkJ421,
User Rank: Apprentice
11/15/2013 | 6:11:35 AM
re: Banks Don't Have Much Time To Embrace Digital Model
I read something recently that suggested banks of the future would most likely be tech IT companies that take on banking functions. This is already happening. I would argue one of the greatest assets traditional banks have is the high degree of trust and loyalty they enjoy from their customers. Yes banks need to embrace the digital model, but must also must continue to nurture and preserve the culture within their organisation that has given them such strong customer loyalty. If they do this then they will see off many of these new competitors.
Steven Cavanaugh
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Steven Cavanaugh,
User Rank: Apprentice
11/14/2013 | 9:53:35 PM
re: Banks Don't Have Much Time To Embrace Digital Model
I saw this study recently, thanks for sharing. What struck me the most is that so many respondents to the online survey cited proximity of branches as the #1 reason for not switching to another bank. The use of mobile banking is skyrocketing and in-branch activity is plummeting. As a result, banks absolutely have to get their digital act together, which the study astutely cites.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
11/14/2013 | 7:47:04 PM
re: Banks Don't Have Much Time To Embrace Digital Model
I wonder when we will start seeing some of the new online loan activity moving to mobile. Especially for auto loans, I think it would be really convenient for a customer to be able to apply for a loan and get it accepted from the car lot.
Byurcan
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Byurcan,
User Rank: Author
11/14/2013 | 3:26:49 PM
re: Banks Don't Have Much Time To Embrace Digital Model
It is true, time is of the essence, we have seen many times in the past industries or individual companies that didn't respond fast enough to changing technology trends become irrelevant. Obviously, banks are always going to exist, but the potential to maximize potential of the digital age can't be given up.


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