
As society moves more and more towards a digital future, the closure of retail bank and building society branches is anticipated to accelerate.
For high street banks, such an outlook is understandably concerning. Without branches, how will customers access their bank’s services? How will banks increase revenue and deposits? Will the traditional bank simply cease to exist, replaced by slick online operations run by behemoths such as Amazon? I believe the answer is no, but only if high street banks take strategic steps now.
Let’s face it: banks are already losing customers, but it’s not because their branches are closing. It’s because more and more of their customers – thanks to their daily experiences and high expectations set by digital-first companies such as Netflix, Uber and Amazon – are choosing to bank online.
As the use of bank branches falls and the rate of mobile interactions increases, high street banks have reached an impasse. They can cling harder to their bricks-and-mortar buildings despite the message customers are sending, or they can move towards the digital technology that will help them evolve their services and offer their customers what they want and need.
Of course, truly transformative digital technology — the kind that high street banks must embrace — isn’t a one-and-done process. To wield it successfully and see positive impacts, banks must prioritise collaboration, communication and customisation.
Collaboration
In the past, some banks have shied away from digital technology because they didn’t have the time, resources or talent to develop in-house solutions. Rather than building new processes from scratch, many banks are finding it easier and more cost effective to invest in strategic partnerships with fintech companies. These fintechs work with the banking industry as technology providers, helping financial institutions to improve their services, increase efficiency, save time and take advantage of cutting-edge tools. This leaves bankers free to focus on customer relationships, resulting in the high-tech, high-touch experience that today’s consumers expect.
Communication
When it comes to loan applications, people generally have two questions: am I approved and when can I get my money? They expect quick, convenient service, whether they’re ordering takeaway or applying for a loan. By investing in digital technology that keeps data in a single, accessible and secure location, the banker can immediately answer these questions—either in person, on the phone or via a mobile app — and keep the lines of communication open, cultivating deeper relationships with existing customers and getting off on the right foot with new ones.
Customisation
No two financial institutions are alike and a bank’s ability to differentiate itself from the competition is integral to its success. Cloud-based solutions and software as a service (SaaS) providers understand this and offer a collaborative partnership model that allows banks to customise and configure technology solutions for their client base — all without expensive upgrades or new service contracts. This is why I find cloud technology so invigorating. Its agile nature allows institutions to drive optimisation, embrace continuous innovation and stay one step ahead of the competition.
While the decision to close branches is often commercially focused, it is also crucial for banks to recognise the needs of their customers and the communities they serve. By making investments in technology, forming strategic partnerships with companies who understand and share their goals and embracing digital innovation, they will not only meet, but exceed their customers’ expectations, no matter how high they rise.
-
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
-
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
-
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
-
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
-
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
-
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
-
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
-
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
-
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
-
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
-
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...