Virgin Money partnered with Allen International to develop the financial brand’s first retail store. The concept challenges the preconceptions of traditional banking, with shades of a piano bar or salon environment. It’s definitely got a lounge feeling.

Allen International wanted to create a timeless quality to the interior, so the interior was carefully designed to reflect a contemporary twist on classic style — wingback chairs with unique colorful fabrics, deep buttoned upholstery, oriental rugs and ornate wallpaper.

The concept was deliberately designed to accommodate community events and other social functions. A baby grand piano has been incorporated for evening performances, and the furniture is easily moved to create large open spaces.

Virgin Money plans to adapt this store concept for the 75 branches it recently acquired Northern Rock. Is this an example of yet another internet-based bank realizing the inescapable value of branches, or a foolish waste of capital on an already outdated channel?

People’s Choice Credit Union – Anti-Bank

The goal for this project was to create an “anti-bank” atmosphere, a place with elements not traditionally found in a bank: coffee machines, communal lockers, umbrellas and handcarts available for members to borrow, iPads for kids and even a community market for local farmers and businesses. The branch was developed by Design Clarity, who described the project as “a social, transparent and rebellious space where members of the People’s Choice Credit Union can work and play.”

ING Direct – Express Branch on Wheels

ING hired retail design agency Storeage to develop this multi-functional coffee bar and mobile office. The boxy structure was engineered to be easily transported to cultural events, festivals, fairs and concerts. The mobile branch, measuring 13 feet long x 2.5 metres high by 8 feet wide when folded for transport, opens from both sides to reveal a sleek, modular coffee bar in ING’s bright orange corporate color. The coffee bar features an espresso machine, small kitchen and office.

ING Direct – San Francisco Café

This is the eighth café ING has opened in the US. Counting the five locations in Canada, ING’s North American cafés now total 13.

Key Question: If banks no longer need physical locations, then why does ING Direct — the world’s most admired internet bank — keep opening stores, with no sign of letting up?

Can you believe these cafés employ as many as 60 people? It’s no small investment.

It’s worth noting that the public loves these cafes because ING sells coffees, drinks and snacks at steeply discounted prices. You can get a bagel and Naked juice for $4.

ING DIRECT – SF CAFÉ 3D FLY THROUGH
A nice two-minute 3D video fly-through of the concept.

North Shore Credit Union – Financial Spa

This design is more akin to an intimate spa setting or boutique hotel rather than the typical bank branch design. The new West Broadway branch features décor reflective of its community, with Pan-Asian influenced materials such as carved pine columns, a granite rock garden fountain, artistic glass walls and a fireplace. Rather than the standard row of tellers, the branch has individual transaction pods. A new feature, the “Discovery Room,” acts as a cozy, semi-private lounge, allowing clients to interact with advisors in a relaxed, warmly-lit atmosphere. The location also features a concierge to welcome members, a “Refresh Bar” with a cappuccinos and hot towels, a kids’ zone and an “Arts in View” display featuring local artists’ works. The project was developed by EHS Design and Weber Marketing Group.

Coast Capital – ‘Help Hub’ & iPads

The credit union’s most recent branch in North Vancouver provides the first glimpse of their remodeled “Aperio” concept, first introduced in 2005. (“Aperio” is Latin for “to make open.”) The new Aperio 2.0 design retains some of the earlier design’s features, namely the open, concentric floor plan. At the center of the branch is the “Help Hub,” an open greeter desk.

The most noteworthy addition to the new Aperio 2.0 branch experience? iPads. The tablets are available for public use, and come loaded with a proprietary app called “Where You’re At Money Chat.” The iPad app is designed to guide people “through a step-by-step process to making better decisions about how they manage, save, grow and protect their money,” said Kathy McGarrigle, Coast Capital’s COO. Unfortunately, the iPads have to be bolted down to the tables, and the only app you can run is Money Chat.

Photo credit: Valerie Hider, Coast Capital.

HSBC Brazil – NASA Caliber Command Center

Okay, so this isn’t really a branch, but the high-tech maze of Barco displays in this HSBC operations command center rivals those seen in movies like The Bourne Ultimatum.

Banco Columbia – Compact Retail

This space is engineered to fit neatly in a standard shopping mall footprint. As customers enter the branch, they are welcomed by a meeter/greeter and then choose to either go either left or right to the teller area or the sales and service advisors. Part of the retail strategy is to be different from most banks in Latin America by eliminating the usual transaction dominated area of the bank and putting the tellers at the back of the branch. Before the new branch concept, 50% of the people queuing were non-customers. In the new ‘allen’ design a special teller queue has been introduced for customers, identified by a yellow privacy panel. The branch was designed by Allen International.

Finanza & Futuro Banca – First Class Minimalism

This private banking concept caters to the bank’s exclusive, upscale clientele. Crea International said they were shooting for the feeling of a financial boutique that adhered to the rigorous guidelines of parent bank Deutsche Bank as well as the “dynamism of F&F Banca” brand. They describe the experience as a “first-class business journey.”

This article © 2012 by The Financial Brand and may not be reproduced.

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Mobile ATMs can also be used to relieve branch traffic at high-volume locations. Or if you’re opening a new branch, you can get a jumpstart by deploying your mobile ATM in anticipation of the grand opening. And if there’s ever a disaster in your area, victims will appreciate access to much-needed cash.

To help you shape the customer experience for your mobile ATM project, The Financial Brand put together the following list of options and design considerations.

Vehicle Selection

When it comes to the style of your mobile ATM, there are a lot of options. There are vans, trucks, buses, converted RVs and tow-behind units. Perhaps the most creative (and pricey) option is to customize an armored car — that long-venerated symbol of cash-on-wheels.

There may be only one ATM or as many as 3-4, with ATMs accessible from the side, the back or even inside the mobile unit. Some mobile ATMs even have a service window for more complex transactions.

VANS — A modest, compact mobile ATM van from Visa (left), and a slightly larger  one from Aman Bank with a rear-facing unit and optional service window. Note the absence of way-finding “ATM” signage on both vehicles. How would new users be able to recognize these are mobile ATMs from afar?

FREESTANDING — This freestanding unit is a cleverly disguised mobile ATM. The credit union can quickly load the ATM on a trailer and haul it to its next location, which is outside a branch in this example. Note the use of a strong, single, identifiable color, as well as the perimeter cameras for security.

TOW-BEHIND TRAILER — Two tow-behind ATMs, one pulled by a Hummer, the other by a pimped-out armored car.

STEP-IN — A step-in mobile ATM with disabled access.

LARGER VEHICLES — An RV and a bus that have been converted into walk-in mobile ATMs.

RIGHT BRAND IMAGE, WRONG EXPERIENCE — As quaint as this old-timey truck is, you have to wonder if people are comfortable performing cash transactions out of the back of an open van.

Graphics & Merchandising

The first and most important requirement is large directional “ATM” signage. People aren’t accustomed to seeing mobile ATMs, so you’ll want a big sign with letters measuring at least two- to three feet. It helps to install a collapsible sign fixture on the roof of your vehicle.

Second, you need to avoid the temptation to include complex graphics and lots of messages. It’s better to paint your vehicle with a strong, bold single color — something like red, pink, chartreuse, lime green or orange. You could pay the extra money to wrap the entire vehicle in graphics, but make sure you keep the design fairly simple (think: “texture” rather than “message”). When it comes to outdoor marketing, you need to remember that less is more. A good rule of thumb comes from the billboard industry, where they recommend between 7-14 words total. As badly as you want people to know you’ve got loans and checking accounts and online banking and four convenient locations, you’re going to struggle if you dump a bunch of text on customers. It’s better to pick one message or product, and include your web address. Forget about things like including your phone number or listing your branch locations. The guys who install vehicle signage love slapping that stuff on, even though it’s little more than space-filler.

Third, you will usually have the freedom to install various other forms of signage and merchandising around your mobile ATM. You can bring poster holders, brochure racks, tables/chairs, inflatables, air dancers and other attention-getting displays.

One way to get noticed is to pick an unconventional color from your brand’s palette. Notice to the right of the photo the portable signage they brought along.

American1 FCU keeps it simple with just a couple of colors and basic messages. Woodsville Guaranty Bank has dubbed their mobile ATM the “Cash Cow – Money on the Mooove,” in a style appropriate to their farm-friendly agricultural community.

While this custom van for Navy FCU is attractively branded, it isn’t very likely that passersby will recognize that it’s a mobile ATM.

It certainly isn’t sexy, but at least you can see the giant “ATM” signs from far away.

To help create a casual, friendly, approachable environment, Tinker FCU brings along an umbrella and patio chairs along, while also serving refreshments.

ATM Receipts = Marketing Opportunity

A high volume of people using your mobile ATM aren’t going to be your customers. It’s a bit awkward shoving a checking brochure in someone’s face when all they want is $20 from the ATM. But they are going to take their receipt. Turn the back of the receipt into a marketing opportunity, and customers will be walking away with one of your mini-brochures in their wallet.

If you aren’t using the backs of your ATM receipts for marketing yet, you should be.

Security

What is it that drives some people to steal ATMs? Who knows? But the temptation is only sure to increase when an ATM is conveniently placed on four wheels. Chevy Chase bank hired security guards to keep an eye on their mobile ATMs. Citi has a more practical solution: slap some parking boots on the tires (although one tire would probably be sufficient). Also consider installing a security camera or two to monitor the surrounding area.

Citi slaps a parking boot on all four tires, but maybe one would be enough? Notice the large, inflatable, portable way-finding balloon. Smart.

Customers will feel more secure using an exposed ATM with a security guard present, but is it worth the extra expense?

Lighting

When planning your mobile ATM, it’s important to remember all the design principles that would normally be applied to any ATM project. This includes lighting. There will be many times your mobile ATM will be deployed past dusk, in which case customers will feel more comfortable accessing their cash in a well-lit environment, just as they would at your walk-up or drive-through ATMs. Extra lighting should also be applied to signage, helping identify the mobile ATM as a “destination location” at the venue.

Notice the bank of four large lights illuminating the transaction area.

This article © 2012 by The Financial Brand and may not be reproduced.

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The richest man in Czech Republic would like to think he knows a thing or two about money. That’s why Petr Kellner, who has an estimated net worth of $9.2 billion, is trying to revolutionize banking in central Europe with his new startup, Air Bank.

The first Air Bank branch opens in Prague in a few weeks. It has no classical teller counter; the branches are entirely cashless. In fact, the branch is so heavy with technology that is it almost entirely paperless. And you can forget about stuffy bankers wearing traditional, conservative business attire. Air Bank Customers are greeted by bankers wearing jeans.

Once inside, customers can choose to sit and any one of the eight computer terminals available in the branch’s open floor plan. If they prefer to work alone, they can use the computer terminal for self-service. But if a customer requires assistance, they sit side-by-side with the bank employee, watching everything happening on the service agent’s screen.

Air Bank says this arrangement comforts customers in two ways. First, being able to see what the service representative sees; there’s no hiding anything. Consumers like transparent processes — especially with potentially confusing and cryptic matters like banking. Details and personal information about the customer are plainly visible. Second, Air Bank believes people are more relaxed when others aren’t queued up behind them, looking over their shoulder (an experience in retail circles known as “the butt brush factor). Studies have shown that shoppers become tense and impatient — thereby buying less — when the layout of a retail space forces other shoppers to get too close for comfort.

For more consultative interactions, staff can meet with customers in a private conference room.

Cash transactions are to be handled by through the bank’s exterior-facing state-of-the-art ATMs. The coolest feature these ATMs offer? Customers can choose their own mix of denominations when withdrawing cash.

Air Bank plans to have 8-12 locations open in the next few years, with the ultimate vision of a 40-branch network.

The space was developed by Italian architectural firm Crea International, a major force in European branch design.

The firm says its concept for Air Bank was inspired by the ancient Greek “Agora,” an open gathering space, or square for public assemblies.

Crea is also working with Tarik Roustama, a billionaire who owns Russian Standard.

 

This article © 2012 by The Financial Brand and may not be reproduced.

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That is most, but not all. DBS Bank in Asia and Dupaco Credit Union in the U.S. are actually rewarding people for making frequent branch visits rather than discouraging them. The two financial institutions are among a growing number of retail banking providers wondering how they might exploit GPS-based social media platforms such as Foursquare.

Take a look and see what they’ve come up with. Just remember, if you try something like this, make sure you’re reinforcing the consumer behaviors you’d like to see. It’s okay to structure and hold fun contests where people chase prizes as long as you are clear about the strategic advantages.

Food for Thought: Besides driving branch traffic, how else can banks use mobile social media check-in platforms to build business?

DBS Gives Away 5 Trips Through ‘Facebook Places’

DBS Places is a relatively complex promotion for the bank’s Asian customers built around Facebook Places. Facebook Places is a GPS-location based technology that lets users virtually “check in” online, so they can share where they are in real-time with friends and family.

Participants checking in a DBS Bank branch through its Places Facebook app will be able to earn points and redeem merchant deals. The campaign is open to anyone who owns a mobile device.

Participants in the DBS Places promotion earn five points for checking in to a new DBS branch location. Users can earn three points for every Facebook friend they refer to DBS Places. Users also get one extra point for every Facebook friend in a network participating in DBS Places.

The month-long promotion is running in five countries: Hong Kong, India, Indonesia, Singapore and Taiwan. There are around 20 locations in each country where participants can check-in to earn points.

The top scorer earning the most points in each country will get to take a three day, two night holiday for two at the Asian city of their choosing.

Users can see how many points they have accumulated and how many check-ins they’ve made through the DBS Facebook application, where statistics are updated in real time.

There are no DBS locations with more than 50 check-ins, and many branches have no check-ins, or only a small handful.

Key Question: What does the financial institution accomplish strategically by sending people on a branch scavenger hunt? Why does a bank customer need to know where 20 different branches are located?

DBS took three months to develop the campaign, which included ads on Facebook to generate additional interest. The contest ends September 5.

In the middle of the DBS promotion, Facebook quietly killed its Places feature, although DBS will be able to conclude its campaign without interruption.

The fact that Facebook pulled the plug on Places suggests that consumers’ appetite for GPS location-based social media may not be as strong as marketers had originally hoped. One explanation might be that people don’t really feel like letting everyone in the world know exactly where they are all the time?

Dupaco Contest Puts Foursquare Mayors on Billboards

In August, Dupaco Credit Union launched a new promotion centered around the social media application Foursquare.

Foursquare is a free application for mobile devices utilizing GPS technology. Foursquare users can use the service to check-in at various locations, find new places, accrue badges and unlock special rewards. Once a user has signed up, they can use Foursquare to check-in while visiting different destinations — including Dupaco branches — to start to earn points and rewards.

Participants in Dupaco’s Foursquare promotion get a free koozie on their first check-in. Every Dupaco check-in enters users in a weekly drawing for a $50 gas card.

Those users who visit a specific branch more than anyone else will have the title of “mayor” bestowed on them for that location. Branch mayors get to have their names featured on Dupaco’s electronic billboards and branch signage.

“Dupaco is paying homage to our Foursquare mayors by featuring them on digital billboards,” said Jennifer Hanniford, AVP of Interactive Marketing at Dupaco. “The public sees the Foursquare mayor names in lights and it generates more excitement to play and compete for the coveted mayorship position.”

It takes as few as five check-ins to be the mayor of some Dupaco locations. One of Dupaco’s mayors has checked-in to her favorite branch some 26 times over the last 60 days.

The first ten people who check-in to each Dupaco location each Wednesday during September will receive “a special freebie.”

This article © 2012 by The Financial Brand and may not be reproduced.

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The credit union has issued check and ATM cards since 2009, but expanded the service to include credit cards in April this year. Using a Datacard 150i, which costs approximately $13,000 per branch, Freedom will replace a member’s lost or stolen debit/credit card for free. Members only need to present proper ID to have a new card made.

For those opening new accounts — especially new members — the instant issue service helps get the relationship off to a smooth, efficient start. Someone leaving the branch with a card in hand can start using their new account immediately. But if they have to wait for their card in the mail, they are likely going to feel impatient and frustrated.

Reality Check: No one wants to “wait 5-10 business days” for anything anymore. People expect instant gratification. The world is now measured in milliseconds. A whole day now feels like a millennium.

A debit/credit card is a symbol of purchasing power. It is the consumer’s most frequent point of interaction with their bank account. Handing someone their card in person — as Freedom has done some 11,000 times already — has a tremendous positive psychological impact.

Reality Check: For all the benefits online and mobile banking solutions offer, instant issue cards is one convenience available only at physical branch locations. (Of course, who knows how long plastic credit cards will be around.)

DATACARD 150i

Freedom rolled out the instant issue credit card service in three of its branches, but says it will have units at all six by the end of the year.

There are plans to promote the service with members as additional machines are added. In the meantime, cards will still be mailed out to some members. Any member who wants an expedited card can choose to pick it up at a branch.

“The Instant Issue machines save Freedom members time as well as money,” said Freedom spokesperson Dana Feeney. “Having a card expeditiously shipped from the manufacturer can cost up to $25.”

According to Freedom Credit Union, TD Bank and Wells Fargo (ne Wachovia), both competitors in their area, also offer instant issue cards.

Freedom Credit Union has over $490 million in assets and more than 57,000 Members, with branches in Pennsylvania.

This article © 2012 by The Financial Brand and may not be reproduced.

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Raiffeisen in Switzerland is trying to shake a negative image with what it calls an “ethical banking” experience. Which has taken the form of white walls. White floors. White ceilings. White counters. White furniture. It looks like a laboratory where scientists in white lab coats conduct experiments. Or as Will Novosedlik puts it, the Raiffeisen Bank branch “looks like the result of a chance meeting between the space station in Stanley Kubrick’s 2001 A Space Odyssey and a pair of jian zhi scissors (traditional tool used to create Chinese paper cut art).”

Rabobank’s Cool Concept Store

Here’s a 3D fly-through of an architectural concept for a retail branch. Notice the glass-enclosed sit-down “privacy pods.”

RABOBANK – CONCEPT STORE

Santander’s ‘Select’ brand reflects luxury lifestyle

Santander, one of the leading banks in Mexico, wanted to update their Premier Banking concept, which was too corporate and cold, to one that was more contemporary and unique. Working with allen international, Santander developed a branch that connected with the target audience through complementary lifestyle brands. Special “brand showcase” pods in the branch highlight prestigious art, fashion and technology brands. To widen investment growth opportunities the brand is designed to become a hub for networking, where social events, seminars and third party luxury brand launches can take place.

Tapping the 5 senses at Helm Bank

The vision of allen international was to create something that would tap the five senses to communicate with customers both consciously and subconsciously. Following a two-day “expression workshop,” allen international worked alongside specialists in sound, taste and smell, creating and developing visual and tactile expressions of the newly-created Helm brand.

Sight & Touch – A distinctive visual language was defined and expressed through all forms of graphic communication, while texture and form were used to create a sense of tactile comfort and warmth.

Sound – Soundscapes were developed to subconsciously affect customer behavior. Low density, low tempo, natural and synthesized sound was utilized to create comfort and encourage browsing, whereas higher tempo sounds were used to encourage speed and movement in transient branch zones.

Smell & Taste – Signature fragrances were created and deployed in key branch locations via the air conditioning system. In addition, Helm-branded treats and water were developed, further encouraging staff engagement with customers.

Architectural rainbow

Horizontal layers of color protrude out from the facade of this Sugamo Shinkin Bank branch. The design, from architect Emmanuelle Moureaux, uses a palette of 12 rainbow colors. ATMs, teller windows, consultation booths and an open space laid out with chairs in are located on the first floor. The second story houses offices, meeting rooms and a cafeteria, while the third floor is reserved for the staff changing rooms. Photography by Nacasa & Partners.

Extrabanca’s architectural ‘bridge’ metaphor

Are you ready for some heavy architectural lingo? Here we go… “The projectual metaphor of this new retail design concept is represented by ‘the bridge,’ which is the distinctive architectural feature,” explain the retail banking experts at Crea International, who developed Extrabanca’s branch experience. “It is seen as a sinuous portal of wood which spaces out the overall surface, articulating the operational desks and welcoming customers to a new reassuring retail banking experience — a powerful dynamic sign which decisively translates the sense of continuity of the project, and breaks up at same time the most conformist retail banking design layouts.”

Qatari bank blends Middle east traditions with modern geographical elements

Barwa Bank wanted to create a tech-savvy environment space where guests would feel comfortable. A central banking area with multifunctional workstations allows tellers to share a touch-screen table as they sit with clients.

Designers at Crea International found inspiration in Qatari nature — smooth lines represent sand dunes while geometrical forms are symbolic of desert flowers. The focal point, giant blossom petals on the ceiling, are pastel shades to represent energy and growth.

The bank has no posters or displays – instead, its innovative design is its promotional tool. Clients do not need to queue; upon entering the branch, they are greeted by a butler who registers their priority of attendance.

Clean retail simplicity

Agenzia Tu is a specialized network of branches from UniCredit, one of Italy’s largest banking networks The design concept from Crea International features glowing merchandising graphics with flowers from all over the world, multiethnic faces and the word ‘”you.”

Raining chains in Italy

This branch for the Cooperative Credit Bank in Italy is draped — inside and out — in chains. There’s something slightly unsettling about having heavy metal chains enclose every space. It undermines whatever sense of transparency all the glass was supposed to convey. Maybe Italians relate to the space differently?

Coast360 FCU LEED Silver HQ & Branch

Developed by EHS Design and Weber Marketing Group, this new green headquarters and flagship branch will be the first private LEED-certified project on the island of Guam. The 48,000 square-foot, 3-story administrative and branch facility features an internal atrium, covered walkway, a green roof, and indigenous landscape design. The green design maximizes daylight, harvests rainwater, reduces solar temperature gain with sun-shading devices, and uses local concrete throughout.

This article © 2012 by The Financial Brand and may not be reproduced.

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The system allows customers to deposit and withdraw money, buy and sell foreign exchange, pay bills, transfer money and buy bonds but does not allow a customer to requests loans.

VTMs also serves non-customers, allowing them to pay bills and transfer money through Ziraat’s system free of charge.

Ziraat keeps its VTMs open 24 hours a day, 7 days a week, 365 days a year.

The bank says that a normal teller could on average perform 76 transactions in a day, whereas with this system this number has increased to 140.

Although Ziraat admits vandalism is a concern — at 70,000 Euros (around US$100,000), the VTMs are not cheap — but feels its customer/account security is sound. Customers verify their identity by a fingerprint scan.

The bank is looking to deploy as many as 1,000 units.

“We are going to introduce the VTM technology specifically in areas that do not have Ziraat branches, especially in Anatolia, and around large Turkish cities. VTMs will also be installed in a number of shopping centers, airports, bus, metro and petroleum stations,” Mesut Güraylı, Deputy GM at Ziraat Bank, told the Hurriyet Daily News.

Ziraat Bank — which translates from Turkish as “agricultural bank” — serves a mostly rural and residential audience.

This article © 2012 by The Financial Brand and may not be reproduced.

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With financial institutions everywhere struggling to define the role of their branches, some banks and credit unions believe they have found the bridge between technology and transactions: video tellers.

Coastal FCU is leading the charge. The $2 billion credit union is one of the first financial institutions anywhere in the world to completely convert their entire network — 13 branches in all — to video tellers. Today, they have a total of 60 video teller terminals deployed, handling all the transactions conducted by Coastal’s 190,000 members. That’s an average of more than 4.5 terminals per branch.

Coastal first tinkered with video teller technology in 2003 at a single pilot branch. After a lengthy beta-development phase, Coastal subsequently rolled out the first of its current uGenius video teller units in late 2008. By the end of 2009, the credit union had converted ten branches to the technology. Today, tellers at all 13 of Coastal’s branches have been replaced by video.

While traditional tellers have been ousted from Coastal’s branches, the credit union has other staff on hand — branch managers, loan officers and other service reps — to handle members’ non-transactional needs.

“I think what they’re doing is quite cool,” Celent analyst Bob Meara told Bank Technology New. “You can take ATMs so far. At some point you need some personal interaction.”

Coastal has been reworking its branch network for a few years now. After adding a number of branches rapidly, the credit union reversed course in 2009 and started closing locations with less traffic. The credit union is down from its peak of 18 branches, but says that video banking platform could make opening as many as five new branches in the next few years a reality.

How It Works

To initiate a transaction, a customer requests a teller by pressing the on-screen “Start” button. The request is routed to the next available video banking teller (who could be working miles away). The video terminal allows the teller and customer to conduct virtually any type of banking transaction, including cash and check deposits, check cashing, transfers and payments — all handled remotely. The terminals can also scan and verify documents, as well as read signatures.

Tellers working in Coastal’s video banking department are located in a special service center at the credit union’s headquarters. The original system that the credit union deployed back in 2003 required both the teller and member to be in the same building.

Coast FCU’s video banking platform is built on uGenius Personal Teller Machine (PTM) technology. uGenius, who is widely regarded as one of the leading pioneers in video banking, recently inked a partnership with NCR. The ATM giant will be optimizing its SelfServe 32 interior ATM units for the uGenius video banking solution.

According to analysts, video banking terminals typically cost around 20% more than standard ATM. But this increase in costs should be offset by the savings in staff/labor expenses.

Reduces Staff While Extending Hours

By leveraging the technology, Coastal Federal Credit Union has been able to expand its hours of service by 44% while reducing the number of tellers by 40% to 50%.

Using video tellers (and by closing a few branches), Coastal was able to cut its teller staff from around 70 down to about 20. Coastal said that it was able to dodge layoffs by transferring and reassigning tellers replaced by video.

“The magic of this system is that the associate doesn’t need to be in the same building,” said Coastal’s President and CEO, Larry Wilson. “Through new technology, one teller can help members in multiple locations, and we can instantly allocate teller resources to match branch traffic.”

“I’m able to work at four different branches from a single location,” Coastal teller Christianne Wilson told the Charlotte News Observer. “I enjoy the whole experience…being on the cutting edge.”

Prior to launching its video banking platform, Coastal members could conduct transactions only during normal branch hours — 8:30 am – 5:30 pm. But with video tellers now handling all the credit unions transactions, Coastal was able to extend hours to 7am to 7pm. In March of this year, the credit union made its Express Tellers available seven days a week, 12 hours a day. No one else in Coastal’s market provides teller-based transactions at this level, giving them a significant competitive advantage.

“The system allows us to serve members faster, handling peaks in branch activity more effectively,” Coastal’s CEO added. “It also makes it easier for us to extend our hours of operation and lower the cost of adding new branches.”

Coastal just completed its one millionth video banking session with members back in January, less than two years from when Coastal first deployed the technology.

Coastal member Randy Lamm the one millionth video banking user. He said he’s a frequent user, and often takes advantage of the video tellers extended-hours capabilities, allowing him to use a branch near his home if he can’t find time to use the location that’s nearest his job.

“Overall, I’ve been pleased with it,” said Lamm of Coastal’s video tellers. “It threw me for a loop at first, but once I tried it, I never had a problem. It’s very convenient, and I’m usually in and out in no time.”

Monica Wilson, another Coastal member, said she often can’t get to the bank during normal business hours, and sees no difference between using a Personal Teller Machine and interacting with a teller in the flesh.

“I especially like it because it is open after hours,” she said.

Coastal’s Personal Teller Machines frequently handle transactions of all sizes and types. The previous session — transaction #999,999 — was for $33,700.

Video Tellers Gain Traction – Next Stop: Your Living Room

Back when Coastal launched, they were one of only five financial institutions in the US using video teller technology. Today there are many other credit unions besides Coastal who offer some form of video banking in their branches (not all are uGenius clients), including Space Coast, Dort, First Ontario in Canada, and Mid-Hudson Valley FCU who was the first to provide 24/7 access to video tellers in its branches. Today, 60% of the Mid-Hudson Valley’s transactions occur after normal branch hours.

uGenius says that over 100 of its Personal Teller Machines have now been deployed in the banking and credit union marketplace in the United States, Canada and most recently in Australia.

What does the future hold? It only seems logical that the next step would be to migrate video banking into people’s living rooms. It seems a bit silly that we still need to drive to branches essentially just so we can — in essence — use the internet. Someday not too far down the road, financial consumers may be able to summon a banker for a two-way video chat wherever they are in the world, with whatever device they may be using — laptop, iPad or iPhone.

Indeed two banks in Russia have plans to roll out home-based video banking by the end of 2011. Russian Standard Bank is planning to launch a new online customer service through video chat. And the Bank of Moscow already has a system underway.

Russian Standard Bank shares  screenshots of its forthcoming home-based video banking system.

This article © 2012 by The Financial Brand and may not be reproduced.

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ING DIRECT Canada has opened a stunning, three-story flagship café in downtown Toronto. Set in a historic building that has been fully restored and renovated, the open-concept space is something the bank claims is the first of its kind in Canada’s largest city. The space boasts a unique, post-industrial loft aesthetic that can clearly be traced back to the previous tenant, Pier One.

The first floor houses the café where people can hang out and enjoy free WiFi along with Peet’s coffee and other refreshments — all at discounted prices. A team of ING employees are on hand to answer questions about the bank’s products and services, but have no access to customer data so no transactions can occur. But you can ask staff to provide you with an iPad so that you can use ING DIRECT’s website to bank online.

The café even touts a vertical garden, something The Financial Brand first saw in a bank branch only a month ago.

Also within the first floor, ING DIRECT will feature a different local partner each month and provide great savings on one feature product. 100% of the proceeds from these items is given to local charities.

The second floor, called Network Orange, is a high-tech shared-office space for independent businesspeople. The Network Orange floor includes three high-tech meeting spaces with LED displays, webinar-ready video systems and digital whiteboards. There is also a large meeting space for up to 40 people — free for Toronto community groups, student organizations, non-profit groups, brainstorms, book clubs and “entrepreneur’s meetings.” Space can be booked online.

Network Orange members can chose from packages with different combinations of meeting room and workspace time. There is also a daily drop-in rate for the occasional worker that needs a flexible and creative space. All proceeds donated to local charities.

The third floor is off limits to the public, functioning as a satellite location for the bank’s Toronto call center.

“Like the direct banking model we pioneered 14 years ago, the ING DIRECT cafés challenge conventions of banking, redefine the role of banks and acknowledge shifts in technology and attitudes in our society,” said Peter Aceto, President and CEO of ING DIRECT Canada. “We are thrilled to continue to break the bank branch model with this unique, community-oriented space in the heart of downtown Toronto.

To promote the café, ING DIRECT hosted a ’7 Days of Saving’ promotion during the grand opening week of May 2-8. The bank partnered with local retailers to offer discounts and free information sessions on everyday ways to save including how to sew buttons, tips for taking better photos and more.

The downtown Toronto café is the fifth ING DIRECT has opened in Canada. The online bank also has cafés in Vancouver, Montreal, Calgary and North Toronto. You can see the other four Canadian and seven US locations in The Financial Brand’s photo tour.

ING DIRECT will be opening another café in San Francisco, its eighth location in the US, in September 2011.

ING DIRECT – Toronto (Downtown)

Address
221 Yonge Street
Toronto, Ontario

Website
ING DIRECT – Toronto (Downtown)

Café phone number (direct)
416-644-5929

Hours of operation
Monday-Friday: 8 am – 8 pm
Saturday: 10 am – 6 pm
Sunday: 11 am – 5 pm
Holidays: Closed

Photos
Via Justin Robinson at blogTO

This article © 2012 by The Financial Brand and may not be reproduced.

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Founded in 1841, The National Bank of Greece isn’t the kind of brand you can reinvent overnight. To help Greeks see the 170-year old financial institution in a new light, the bank created i-bank, a subbrand for its online, mobile and phone banking solutions.

Now, in an effort to raise awareness of i-bank and its suite of alternative delivery services, the National Bank of Greece created a sleek and stylish concept store. Don’t be fooled: with no tellers and no cash, this is definitely not a branch. It’s more like ING’s Cafés, designed to generate awareness of the brand. The i-bank is, in essence, a giant, real-life marketing tool — much like an ad or billboard for the bank’s online/self-service channel.

National Bank of Greece chose allen international and interactive partner Beaver Group to design this multi-purpose electronic banking environment. The space uses any orgy of digital technologies to attract new customers, while promoting- and teaching the use internet, mobile and phone banking services.

The solution is described as a virtual “digital gateway” to the i-bank brand, an architectural metaphor starting with the store’s unique entry portal. Retailers usually let customers see what’s inside, but the i-bank unusual façade intrigues passersby.

“A striking architectural split was created between the left and right sides of the branch and digital touch points are built into a seamless black glass wall which guide the customer in from the entrance portal,” explains allen international.

Those entering the store are greeted by bright, LED rear-illuminated graphics wrapping the vestibule 360°. Images are projected from the ceiling down onto the entry floor to give customers a visual perk.

“Internet pods” create relaxed private booths for up to two people who can explore the bank’s digital, self-service solutions. Customers can carry out daily banking functions through video chats with remote service specialists.

At the rear is the ‘i-lounge’ with its living vertical garden, creating a quiet zone for customers to enjoy refreshments or hold social meetings.

Customers can also participate in educational workshops, watch presentations, use video conferencing and tap the bank’s free WiFi. Also, a free i-bank store club card gives members access to sweepstakes, discounts and invitations to various events planned for the branch.

The architects at allen international say the i-bank is “a place of entertainment, training and an exchange of views on technology, modern banking services and the environment.”

“i-bank is a technologically innovative, ecologically responsible and customer-friendly space that changes peoples’ perceptions of a bank,” adds Michael Allen, Chairman of Allen International.

The i-bank store located on the first floor of The Mall Athens in the Maroussi area of Greece. The location is open Monday through Friday 9 am to 8 pm, and Saturdays 10 am – 5 pm.

In 2011, two more i-bank stores will open their doors.

The bank has a lot more information about its i-bank concept including a press release and presentations that look to be replete with good information, but it’s hard to say since it’s all Greek to me.

I-BANK VIDEO TOUR

Watch these two short videos (video 1, video 2) about the i-bank store and you may forget it has anything to do with financial services — more like a cross between a disco and a swanky spa/hair salon.

I-BANK DIGITAL CONTENT
Working with Allen International, Beaver Group produced some
truly eye-catching content design for the interior wall space.

I-BANK VERTICAL GARDEN
For the i-bank store, the folks at Vitaverde made what
is described as the first vertical garden in Greece.

This article © 2012 by The Financial Brand and may not be reproduced.

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UMTB Live virtual branches offer one-on-one phone support, secure e-mail, live online chat, various forms of instant messaging and extended service hours. Personal bankers are available from 7 a.m. to 8 p.m.

Customers use a combination of online tools to manage their accounts, and communicate with a dedicated personal banker using a range of contemporary communication channels.

In addition their own personal banker, UMTB Live customers have access to a “branch manager” along with a team of professional financial experts such as investment and mortgage advisors.

If you speak Hebrew, go watch the UMTB Live demo.

UMTB LIVE
There are three main pages. 1) Meet Your Personal Banker, presenting faces of actual bankers. 2) Talk to Your Banker, with the range of available communication channels –- video chat, SMS, toll-free phone number, e-mail, fax. 3) The Branch That Goes With You, offering general information.

How it works

Those interested in UMTB Live must be willing to completely forgo traditional branches. Customers who enroll cannot get service at any of the bank’s physical branches, with the exception of using teller and ATM services to deposit cash and checks and make withdrawals.

UMTB Live offers courier service for delivery of customer documents that cannot be sent via e-mail — when genuine signatures are required, checkbooks, credit cards, etc.

The UMTB Live Information Center aggregates all of a customer’s banking information in one place, including all correspondence with their personal banker, online data and messages received from the bank. The user interface is the same secure website that regular UMTB customers see, but with a few enhanced features.

Phone-calls and SMS messages to the UMTB Live toll-free number are diverted directly to the customer’s personal banker. Phone service is available until midnight on weekdays.

UMTB Live offers courier service for delivery of customer documents that cannot be sent via e-mail — when genuine signatures are required, checkbooks, credit cards, etc.

Online chat and SMS services are provided through LivePerson, a global vendor specializing in customer-service instant contact solutions

There should be a custom designed UMTB Live interface for smart phones and tablets like the iPad, but there isn’t, at least not yet.

UMTB Live is free to all bank customers. Existing UMTB retail customers can have their accounts turned into UMTB Live accounts upon request via phone, online or at a physical branch. Due to regulatory issues in Israel, where UMTB is based, new customers must stop by a physical branch to sign an initial set of forms.

As a promotional incentive, participating customers receive a 40% reduction in most checking fees during their first year of membership.

Translating the traditional model into the virtual world

Instead of building a single, gigantic warehouse for all UMTB Live customers, the bank created virtual branches based around a more traditional offline model.

“A virtual branch is sized like a medium-sized UMTB physical branch,” explained Gidi Dorevitch, a Research Manager at Adkit who worked with UMTB.

“There are four virtual branches and not one big contact center — not for any marketing reasons but due to actual operational logic,” said Dorevitch. “Each virtual branch operates as closely as possible to a physical location so branch managers and team leaders can have both flexibility and control with bankers and their customers.”

Each virtual branch has 15 fulltime employees. The service model requires teams of three bankers. Each banker serves a specific set of customers, but also provides backup for the other two.

Dorevitch is enthusiastic about the scalability of the virtual branch model. “Whenever a virtual branch reaches its customer capacity, an additional one can be opened,” he said.

Since launching, UMTB has opened four virtual branches, serving approximately 6,000 customers.

While these are not impressive numbers, the UMTB Live concept has created an
industry buzz among managers and customers of rival banks. The beginning of 2011 saw additional Israeli financial institutions working on customer management models similar to UMTB Live.

While remote relationship management (“Remote RM”) is being implemented by some global banks such as Barclays, Citibank and HSBC with Live Connect, they primarily involve video consultation and “click to chat” services absent a personal banker.

This article © 2012 by The Financial Brand and may not be reproduced.

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There is a new show on the Paris opera scene. When BNP Paribas opened on Le 2 Opéra mere steps from the world-famous opera house, this historic section of Paris that dates back to Napoleonic times quickly stepped into the 21st century.

The BNP Paribas branch is a riot of hues, what one reviewer called a “wacky funhouse of colors, shapes, textures and forms.” It is a surreal combination blending the styling of an upscale salon with that of a comfy European home. Throw in some contemporary tech and a dash of eccentric creativity, and the result is a visually stunning and sensory experience. The French, always admired for their sense of flair, do not disappoint.

BNP Paribas is using its new Paris location as an experimental prototype, testing a range of innovations and technologies. BNP Paribas says this branch, which it describes as part concept store and part innovation lab, is the first initiative of this kind that the bank has ever undertaken.

Features of the BNP Paribas branch include:

• Le Lounge – Both existing clients and prospective customers can relax and surf the internet via their own smart phone or with an iPad provided free.
• Banking Boutique – Customers and prospective clients can explore BNP’s range of products and perform simulations using the iPad applications provided.
• Banking Boutique Plus – If the regular Banking Boutique is for self-service tech, then this section is for more personal and consultative interactions. Advisors will be available to help clients to plan their finances by working with an interactive screen.
• Financial Info Area – A learning environment where people can access economic and financial information, check stock market prices, attend workshops and seminars, etc.
• Play Area – Where children can have fun, draw on a tiled wall or watch children’s TV programs.
• Self Service Area – Where people can carry out cash and check transactions independently during extended hours — from 7am to 11pm, seven days a week.

BNP PARIBAS – TOUR OF CONCEPT STORE AT PARIS OPERA

This wonderful 2-minute video gives you a really good sense for how everything ties together. There are two lounges, a coffee bar, interactive learning environments and a kids play area.

Giant retail windows with LED light sculpture

The branch’s exterior is a sight to behold. Two massive LED walls flank the entrance to create a spectacular light sculpture rivaling any major retailer’s street display.

BNP PARIBAS – LED LIGHT SCULPTURE EXTERIOR MERCHANDISING
A short, one-minute video showing how the giant LED walls work.

Differentiation through innovation

“Innovation is an important means of differentiation in the banking industry,” the bank said. “As such, it is central to BNP Paribas’ strategy.”

“This unique branch model will help to develop a new approach to banking relationships and pilot the use of new technologies in the branch,” BNP Paribas explained.

The French retail banking arm of BNP Paribas has rolled out a number of new innovations over the past year, including an iPad app and the launch of Net Agence, its dedicated online bank branch.

Among its core values, BNP Paribas lists commitment, approachability, learning, responsiveness and innovation.

Two years from start to finish

Planning for the concept store took over 15 months and involved over 100 staff.
The bank also involved clients in the design process by conducting a survey before launching the concept. The bank’s clients said they want a more friendly branch atmosphere with a choice between real human contact when they need assistance and self-service options based on innovative technologies.

Using this feedback, the architectural team at Zoevox helped BNP Paribas develop a unique branch concept over 15 months. Construction took nine months.

The resulting building covers 6,200 square feet (1,900 square meters), distributed on two floors, of which 4,000 square feet are open to the public.

The new Paris branch is expected to serve 25,000 BNP Paribas clients, more than half of them from countries other than France. The branch has 50 staff on hand each day, with some 20 specially trained to look after than bank’s international clientele.

Hat Tip: To Kathryn Lineberger of finanSTYLE first found this item through Cool Hunter.

This article © 2012 by The Financial Brand and may not be reproduced.

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Saturday Branches

Each vertical bar represents a cluster of financial institutions with similar size branch networks. Within each bar, there respondents are broken down according to the percentage of branches they have open on Saturdays.

Blue indicates the percentage of respondents who have no branches that are open Saturdays. Gold indicates how many financial institutions in that category open most (if not all) of their branches on Saturdays.

All larger financial institutions have at least some branches open Saturdays; at least two-thirds keep half their branches open.

Smaller financial institutions are more likely to open all of their branches on Saturday, or none of them at all. 20% of the smallest financial institutions had no Saturday branches.

Are Saturday branches becoming the norm? David Basri, President of Point Enterprises thinks so.

“Saturday hours would appear to be an accepted, and even expected, practice at this point,” he said.

Sunday Branches

While Saturday branches have become mainstream, Sunday hours are far less common. The blue bar indicates financial institutions with no branches open Sundays.

Only one institution had Sunday hours for most of its branches, and one other had approximately half its branches open on Sunday. Of those banks and credit unions with at least some Sunday branches, most only kept a small percentage of them open.

One Role vs. Many Hats

For this section of the survey, the response choices were:

1. Most branch staff are in traditional dedicated roles
2. Selected branches have staff perform multiple roles to fill in as needed
3. Staff commonly perform multiple roles with training to support it
4. Staff is primarily trained and scheduled to perform multiple roles

One third of financial institutions use “floaters” at teller positions. Another third uses “universal floaters” who can staff any position. And the remaining banks and credit unions don’t use any “floaters” at all. (“Floaters” are employees who can move from one branch to another based on staff availability and peak traffic patterns.)

“Traditionally, employees’ roles are viewed as ‘silos,’” noted Basri. “Employees are either tellers or new accounts or loans, etc.”

But Basri said that’s changing. “With universal staffing, employees deliberately cover multiple roles. It has been done on a limited basis for a very long time, but now it is becoming a much more common strategy.”

Universal Staffing

“Universal staffing” refers to employees that are trained and scheduled to perform multiple roles — teller, new accounts, customer service, loans, etc.

Several respondents said they were considering or evaluating universal staffing. These financial institutions noted that they are experimenting with various levels of universal staffing, but it has not yet been embraced as an ongoing operational strategy. A common approach is to explore some form of universal staffing at smaller branches while continuing traditional roles in larger, busier locations.

“Traditional staffing models only represented 30% of the sample, so the trend is clearly moving towards universal staffing,” added Basri.

Basri hypothesized that those with weekend branches would have a greater reliance on universal staffing, but that was not the case. There was no bias for universal staffing models at large- or small financial institutions. Banks and credit unions of all sizes offered a full range of responses.

Basri noted that pursuing a universal staffing model is not on/off, all-or-nothing decision. “Some financial institutions are implementing it only in smaller branches. Some only cross-train teller and new accounts, while a few are going completely universal. Many — maybe most — still maintain a staff of dedicated tellers, but are supplementing those positions with universal staff.”

Profile of Respondents

54 institutions responded to the survey, all of them operating in North America. Two were from Canada and the rest were in the United States. 47 of the respondents were commercial banks while 7 were credit unions.

Do You Keep Your Branches Open Weekends?

Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

This article © 2012 by The Financial Brand and may not be reproduced.

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Standard Chartered is issuing RFID chips to select customers at its newest Korean location, eliminating the need for affluent individuals to wait in lines at the branch.

When a customer holding an RFID tag enters the facility, the system immediately notifies the branch manager and a relationship manager who can greet the customer personally at the door.

The RFID units won’t be available to just anyone. Only those in the bank’s top three banking tiers will be given special RFID treatment. Recipients will be hand-picked from a select group of Standard Chartered’s Preferred Banking, Priority Banking and Private Banking customers. Preference will be given to those who visit the branch frequently, are open to new technology, and have a strong relationship with the bank.

Standard Chartered caters to a wealthy, international audience, with over 1,700 branches in 70 countries. Its Preferred Banking customers maintain deposits with the bank totaling around $50,000. Priority Banking customers, twice that. Preferred Banking customers — those in the top tier — have nearly $1 million in deposits. These are swanky jet-setters with no time to waste in bank branches.

Standard Chartered says it is the first bank in the world to adopt RFID tags as part of an “intelligent queuing system,” however Yes Bank in India claims to have rolled out an RFID system back in 2009.

When premium customers walk into the branch, their name and basic profile to appear on the screens of both the Relationship Manager and Branch Manager.

Branch prototype serves as testing facility

Standard Chartered’s new branch in Korea represents more than just an advancement in queuing. It’s a prototype branch serving as a beta-testing site for future improvement at other locations. Standard Chartered is exploring the integration of new technologies like video conferencing and digital merchandising.

The sophisticated open-style interior design of the Korean branch will be applied to new, relocated and remodeled branches. After the bank has had the opportunity to evaluate customer reactions, it will then decide whether or not to implement its new, experimental technologies on a wider scale.

“This new branch is expected to appeal to next generation customers, and increase customer transactions through its innovative design and systems,” said Standard Chartered’s Head of Consumer Banking. “I also hope it encourages customers to purchase more products.”

Standard Chartered Korea

This branch features the personalized Q-matic RFID system, iPads for staff/customer engagement and entertainment, digital merchandising/marketing materials, video conferencing, digital whiteboard and an internet kiosk.

Standard Chartered – Singapore

The Marina Bay Financial Center is Standard Charter’s flagship branch in Singapore. This branch illustrates how Standard Chartered creates two distinct spaces, separating experiences for Personal vs. Priority Banking customers. The mass market side of the branch is skews retail, while the upscale side is decidedly more sophisticated.

PERSONAL BANKING – Notice the bright blue-and-green color combination used in the retail banking side of the branch. Shown here: “Quick Service Station” against a merchandising backdrop incorporating Standard Chartered’s “trustmark” logo.

PERSONAL BANKING – Technology, retail merchandising, bright colors and functional decor define the retail banking experience.

PERSONAL BANKING – The digital displays above the teller bays seem like they might lend themselves to a “now serving” queuing system.

FLOOR PLAN  – Personal Banking occurs in the green space, while Priority Banking customers get the blue treatment. Notice the passageway between the two halves of the branch. Where’s the vault?

PRIORITY BANKING – ENTRANCE

PRIORITY BANKING – WELCOME DESK

PRIORITY BANKING – LOUNGE

PRIORITY BANKING – ARTWORK

This article © 2012 by The Financial Brand and may not be reproduced.

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[Editor's Note: You might also be interested in this related article about Standard Chartered Bank's new branch that uses RFID chips to alert managers when high-value customers enter the facility.]

Remember a few years back when they said that the bank branch was dead? Well, it turns out they were wide of the mark. Internet and mobile banking may have grown and evolved, but the branch is holding its own in the multichannel mix, though its role is changing rapidly.

Unlike yesteryear, customers don’t need to come to the bank for routine transactions. Internet, mobile, ATMs and phone banking can take care of most basic banking needs. This has allowed bank branches to focus more on giving customer advice and selling a wider range of products.

To achieve this refined role and remain relevant to customers, banks are having to think more like retailers. This means making branches much more inviting and tailoring services to customers’ needs. It’s not just about eye-catching features and smart technology; it’s about transforming the entire experience of banking, right from welcoming people with a warm smile.

These days don’t be surprised if your local branch looks more like a Starbucks coffee shop and is open late in the evening and over the weekend to suit you. In future, there will be fewer one size fits all type of branches. Being customer focused, whether you’re a bank or a retailer, means that you have to adapt to what your customers want, when they want it and how they want it.

At Standard Chartered, we’re turning the concept of the traditional branch on its head, starting this year in Singapore, Hong Kong, Korea, Malaysia, Indonesia, Bangladesh and China. In the next generation branches that we have started to roll out across our footprint there are no barriers between us and the customer. The shop front is open, the interior sleek and brightly lit. With WiFi throughout, staff use laptops to serve customers at any desk. Touchscreens let customers browse and email brochures to themselves. They can even use video conferencing to consult with specialists who may not be available at the branch. Meanwhile, automated check-in systems and comfortable waiting areas mean customers avoid the hassle of queuing.

Our customers helped us design this new branch experience. We set up a mock branch in a lab environment in Singapore and invited customers to test it. Based on their feedback we made changes to the design and features before rolling them out to live branches. And we’re not stopping there. Staff are currently piloting iPads and hand-held devices for servicing and presenting information to customers. Meanwhile we’re also looking at ways of using more digital signage and posters in our branches, to improve communication and protect the environment. We’re even trialing signature scents and music, a feature successfully deployed by big names such as Nike and Wal-Mart to improve the customer experience.

Why are we doing this? Against expectation in some quarters in the late 1990s, the branch remains vital in the channel mix. International research by Accenture has suggested that the branch is still the favoured channel for customer interaction, the dominant sales channel for more complex products and the most effective channel for acquiring new customers. Also, trust has taken a completely new meaning in banking relationships since the global financial crisis. More and more customers prefer to see a physical manifestation of the brand that they are dealing with. Our own experience across Asia, Africa and the Middle East strongly supports this.

Technology will evolve and new ways of banking keep emerging. Meanwhile, questions continue to be asked about which delivery channels will prevail. The answer is that all channels will. What’s changing is that more customers will interact with banks seamlessly across multiple channels to fulfill their financial needs. A home buyer wanting to take out a mortgage, for example, may research options online, get details over the phone or through web chat and then walk into the branch to buy the product. This means that banks need to integrate customer experience across channels, not focus on investing in one above the other.

Basic banking needs have not changed: people still have to pay for goods and services, to save and invest, to buy homes and grow their wealth. We know that people bank because they need to. What we must focus on is making the experience simple and convenient — whether through the branch, at the ATM, on the internet or by mobile phone — so that customers can get on with living their lives. Banks are doing this not only by making services available through all channels, but fundamentally by thinking very differently about the customer. The way we see it, banks need to work at fitting into people’s lives, not making them fit into ours.

Everywhere, all the time, technology is opening up new ways for banks to reach customers and enhance their experience. Mobile phone banking is one area witnessing rapid change, spurred by expanding 3G networks and smartphone technology. Breeze, Standard Chartered’s rich mobile banking app, lets customers bank on the go, right down to issuing e-checks from their iPhones or iPads. Already, millions of customers around the world use phones to access mobile banking platforms at a time and place to suit them. In Africa in particular mobile technology is helping millions of people to access banking for the first time.

At Standard Chartered, as we expand our retail banking services, we will put the customer first, not become blinded by the pace of technological change, nor prioritize speed-to-market above security and service quality. At the end of the day, banking is about enabling customers to achieve their ambitions; it’s about helping them to protect and grow their wealth and enhance their life styles. While channels of delivery will change, trust between the bank and the customer will remain pivotal.

As for the branch, we see it changing and adapting to customer needs and preferences but we don’t see it going away. Despite predictions, television did not make cinema redundant because cinema offered an experience television could not. Likewise, online and mobile banking will not make branches redundant as long as branches offer customers an experience and a benefit that no other channel can.

This article © 2012 by The Financial Brand and may not be reproduced.

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