Timetric Retail Banking Reports
Our banking analysts work with unique proprietary data to help create reports that define markets, identify trends and deliver actionable insights. From packaged accounts to mobile banking, our reports are developed in conjunction with our advisory panels to make sure they suit your needs.
Next Generation Branch Banking
For any enquiries please contact firstname.lastname@example.org
- In branch transactions
- Branch banking
- Online banking
- Mobile banking
- Cross selling
- Channel migration
- ABN Amro
- China Bank
- ING Direct
- BNP Paribas
- Jyske Bank
- Deutsche Bank
- Identity Group
- This VRL report looks at the reasons why branch banking footfall is on the decline in the West.
- The report considers what banks must do in order to reverse the impact this will have on branch and operating profits
- Case studies from the US and across Europe are featured, highlighting moves being taken to automate functions, build brand awareness and establish flagship branches, amongst others
- It weighs up the conflicting messages which are being thrown up – some of the issues are structural, some cyclical.
- Product code: VR0804MR
- Published: Dec. 1, 2011
- 77 pages
- Single-user: $3800
- Site License: $8000
- Enterprise License: $12500
- Terms & Conditions
The number of in-branch transactions in mature markets has declined by a quarter over the last four years, from roughly 11,400 transactions per day (on average) in 2006 to 8,550 in 2010. 39% of customers visit their bank branch less than once a month, while 20% visit the branch less than four times a year. 20% either never visit their branch, or had visited it three months ago or more. In the US, it is estimated that 40% of bank branches are unprofitable. Consumers in mature banking markets are visiting branches less frequently and when they do, it is to conduct low margin transactions. With product demand in stagnation and with service perception acting as a key factor for attrition across all mature markets, the branch will have to rethink the way it engages with its customers. Now more than ever, banks must recognize how to get value from their branch networks. The biggest obstacle facing retail banks is their underlying reluctance to rejuvenate the bedrock of their back-office operations. Innovations inevitably involve high costs and disruptions to customer service, and this is something banks are sensibly trying to avoid. When the current infrastructure was devised and rolled out, the banking habits of consumers were vastly different. All activity related to loans, credit cards, mortgages and investment opportunities were fundamentally impossible to perform outside of the branch. Customers have moved on since the 1970s and technology is now part and parcel of the banking experience. Unfortunately, it seems that the majority of banks are still tuned into this branch-centricity which positions the branch at the centre of the whole experience. There are now a number of channels in operation, and banks must make more to include them in the design and marketing process of their products.
- This report looks at the reasons why branch banking footfall is on the decline in the West
- It considers what banks must do in order to reverse the impact this will have on branch and operating profits
- Case studies from the US and across Europe are featured, highlighting moves being taken to automate functions, build brand awareness and establish flagship stores, amongst others
• Customer loyalty is no longer guaranteed in retail banking
• Retail banks in mature markets have, for a long time, relied on silos to launch and maintain their products
• This approach encourages competition between departments (and channels) and in the quest for customer acquisition/retention, the overall service experience is dismantled
• Banking customers of today live in an age of instant access and instant gratification
• The main reason why branches underperform is a combination of the location, the format and the activities that take place inside each branch
• By prioritizing the branch and overlooking alternative channels, banks have not only misjudged the behaviour of their customers, they have patently lost sales opportunities either through badly designed e-channel processes or by targeting customers with irrelevant marketing messages
Reasons to buy
- Discover in this report why branch visits are down across all demographics and mature markets
- Develop a strategy to improve service culture across all channels
- Identify the impact changing consumer expectations is having on personal banking relationships
- Learn what strategies banks can employ to become centres of profitability
Table of contents
Chapter 1: Say goodbye to your branch...
The branch is expiring...
Trapped within silos - banking products and staff are set up to compete rather than collaborate with one another
How are branches being utilized by customers in 2011?
Customer channel preference
The benefits of a multi-channel mindset: cross-selling opportunities
Should banks be investing in branch networks?
Turning tellers into sellers
Change the channel: looking beyond the branch
The cost of the branch
But if the branch gets the majority of the sales revenue, why should banks look to other channels?
Advertising dollars are migrating too...
Best practices in channel migration
CASE STUDY: Unicredit - boosting sales through migration
CASE STUDY: Denizbank - innovations in channel management sit well with the youth of Turkey
Chapter 2: Changing consumer behaviour - the role of empowerment
Always connected: “I sent you an email 10 minutes ago, why haven’t you replied?”
Empowerment: the world of radical transparency
Customers have learnt how to be needier: Maslow’s hierarchy of needs
The role of technology
Consumers are running out of patience: the stress of waiting
So what does that mean for banks?
The emergence of the dialogue
Chapter 3: Dealing with the data - soft information from outside the branch
The era of big data has arrived...
In the new era of customer engagement, who owns the banking experience
Banks must not only grapple with big data, they must master social media as well
The customer’s voice is the only voice that matters
The value of peer influence is staggering
Big data and predictive selling
But back to banking...
Chapter 4: Race against the machine - how technology is impacting the way banks get value from their networks
Banks are just bits and bytes
The electronic ecosystem
Banking today - tracking the bits and bytes
Lessons in efficiency: strength in (low) numbers
Google and HSBC: distant cousins?
And some banks are acting like software powerhouses already
Banks are like 1,000mph cars
CASE STUDY: IT efficiency - Santander’s shift to a global core system
CASE STUDY: eBank - the efficiency of the online channel
Making the most of existing infrastructure: the ATM - “Do you have any vacancies...?”
CASE STUDY: Cashcard Singapore
What do customers want from ATMs? ATMs as marketing machines
ATMs as a multi-channel customer communication platform
Chapter 5: Do banks need buildings to form relationships?
Customers need branches, don’t they...?
Hard and soft information
Who stands to benefit from neighbourhood banking?
But do banks really need branches to gauge this information?
The convenience of automation
Looking forward: the current and future focus for branch automation
The degree of automation is key
More time to do the important things: the implications of automation
Top tier Asian banks set the precedent...
Rationalizing branch activities
Straight through processing
China Bank leads the way in STP rates
The benefits of a multi-channel mindset: optimised cross-selling opportunities
CASE STUDY: ABN Amro
Boosting the multi-channel approach
Business Process Management brings operational excellence
E-banking represents a remarkable opportunity
Shifting customers away from branches
Investment in branches stays the course
In the UK branches are a powerful customer retainer for banks
CASE Study: Belgium’s Bpo - the pursuit of growth through non-proprietary branches
Chapter 6: Survival of the fittest - branches that will rise to the challenge
The adoption of a multi-channel mindset is essential
The self-service/ automated branch
ING Direct: organic growth without the reliance on a branch network
ABN Amro - The Teleportal branch
BNP Paribas - the dream of automation
The Flagship branch
British Telecoms - The Agile Bank concept
The opportunities afforded by BT’s extensive network
Demographic sensing digital signages
Surface teller and palm vein reader
Jyske Bank: Differences - how to create a strong brand identity
Empowered branch staff for empowered customers
Building brand awareness
Jyske: a cultural overhaul
Deutsche Bank - the Q110 branch
The Rabobank store and the flagship branch
Identity Group - The Lifestyle branch
Unicredit Banca - the fruits of extensive segmentation
BNP Paribas: The Laboratory
Citibank: learning from the masters...
The Natwest Mobile branch
Chapter 7: Some final thoughts with Michael Allen, chairman and managing director of Allen International
List of tables
List of figures
Figure 1.1: Portion of branches that are underachieving in the portfolio (viewpoint of executives)
Figure 1.2: The timing of consumer’s last branch visit differs by respondent age
Figure 1.3: Most frequently requested branch services
Figure 1.4: Customer preferred channel
Figure 1.5: Distribution channel priorities
Figure 1.6: Branch vs online banking activity of US consumers (% of respondents)
Figure 1.7: Historical revenue mix, first half vs second half
Figure 2.1: Maslow’s hierarchy of needs
Figure 2.2: Social networking site used by age group, 2005 - 2011 (% of adult internet users)
Figure 3.1: Precognitive selling
Figure 4.1: Google & Apple - bank comparison
Figure 4.2: Santander efficiency ration
Figure 5.1: Top reasons for defection from banks in 2011
Figure 5.2: Past/current focus
Figure 5.3: Future focus
Figure 5.4: Impact of workflow processes and automation of branch staff and customers
Figure 5.5: Time spend by activity for branch staff
Figure 5.6: The journey to multi-channel excellence
Figure 5.7: What is the most satisfactory channel?
Figure 5.8: Channel cost structure - when it comes to investing in channels, 75% is spent on branches alone
Figure 5.9: Remote channels rising at the expense of branches
Figure 5.10: Sales are taking place through branches at a lower rate
Figure 5.11: Preferred banking method
Figure 5.12: Customer mortgage mix (%)
Figure 6.1: The decline of cheque transactions - teller transaction estimates
Figure 6.2: US banks’ number of customer accounts
Figure 6.3: ING customer income distribution
Figure 6.4: US annual customer attrition (2007-2009 average)
Figure 6.5: Jyske brand awareness