As consumers turn to smartphones, tablets and computers for transactions, lenders have to rethink how their branches will meet the changing needs of both rich and ordinary customers
Some 15 per cent of
Although mobile penetration and usage in the
Indeed, Bain's recent retail banking survey of about 2,500 people across the
A similar survey conducted last year included about 150,000 people in 14 countries across
Bain's surveys found that digital channels are delighting consumers. People love advanced features such as remote deposit capture, or alerts when homes that meet their buying criteria become available. They also value the convenience of mobile devices for straightforward tasks, such as checking account balances.
For retail bankers battling to retain customers and offer them more financial products, digital channels can be a powerful way of building loyalty – when those channels emphasise the right features and transactions, and dovetail tightly with phone centres and other ways that banks communicate with their customers.
Banks should not assume that they can simply build mobile platforms and loyal customers will follow. Mobile banking usage increases with income, the survey finds, but wealthy customers are more demanding. They tend to seek premium service and tailored expert advice through personal banking relationships, not just convenience through digital channels. And because many of them conduct their banking and business affairs in several countries, they know what high quality service is about.
Why do affluent customers matter so much? In the
Affluent promoters own more bank products than affluent detractors, and they tend to recommend their banks to friends and family members.
The two themes of our survey findings – a surge in online and mobile banking and the tepid loyalty scores of rich customers – point to a logical way forward. If
Digital banking reduces branch visits, setting the stage for major branch redesign – thus serving the mass market more efficiently. Today, some 30 per cent of
Branches will not disappear, but their role will shift to lighter, more innovative formats. A few examples in other countries show the range of possibilities. EasyCredit in
Citibank is piloting technology-intensive branches that rely on touch-screen walls, iPads and teleconference facilities at high-traffic locations in
Radical branch redesign, while daunting, can be done through test-and-learn experiments in trial markets. For instance,
Many customers will embrace such formats if the self-service channels are intuitive and convenient. The challenge is to integrate disparate channels into a seamless, holistic experience. Solid execution of the details will be critical.
Leading banks in other countries have already begun their network redesign.
No love lost for banks, b10
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