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Mixed signals from regulators on everything from electronic checks to Operation Choke Point - only create fear, uncertainty and doubt among those in the business of improving the payment system, writes Glen Fossella.
August 19 -
Layout, compensation and training can make or break high-tech, high-concept branches, said bankers at BAI's Retail Delivery conference.
November 14 -
While banks almost universally offer mobile services, such as smartphone apps or mobile-friendly websites, their customers have been slow to use them, according to an American Banker/SourceMedia Research white paper.
October 29 -
The transformation of brick-and-mortar offices into high-tech sales centers has become an urgent matter as consumers increasingly transact through digital alternatives, yet branches still generate more sales than any other channel.
October 30
Banks have long deployed new customer channels without retiring old ones. We've added ATMs, help desks, interactive voice response phone systems, online banking, and self-service kiosks, but the branch has remained at the center of customer relationships throughout these evolutions.
Today, mobile banking is the channel that competes most with the branch for consumers' attentions. But unlike previous newcomers, mobile is driving a structural shift away from branch-centric banking and toward mobile-centric banking.
We have heard warnings about the end of branches before. ATMs were supposed to herald the death of the branch as did online banking, and it never happened. But this is different. While banks have always focused on moving activities from the branch to these new, more efficient channels, this is the first instance of a channel technology that is capable of making the branch itself more efficient.
The implications of mobile-centric banking are significant. In this model, the smartphone is still a delivery channel, but also takes on the role of "traffic cop", managing and extending the capabilities of other channels. We see early signs of this happening today.
Self-service vendors like NCR Corp. are making big plays into
One of the most critical branch functionsnew account applicationsis finally transitioning to mobile in a big way. Bottomline's Andera business unit, a leader in online account opening, claims that
Withdrawing cash at retailers using one's debit card is now commonplace, but depositing cash at those same retailers is on the horizon. Companies like Fuze Network are
As these and other capabilities mature and gain acceptance, the branch will no longer be at the center of the banking experience. This means the branch can finally evolve to its next life focusing on personalized, in-depth interactions with customers. Staff will be freed not only from transactions but also information dispensing and general coordination; today's "universal banker" concept will prove to have been transitional as branch staff move upstream in expertise.
Mobile services will make branch staff powerful agents for the bank. They can work with consumers in person or via video conference to complete new-product applications on mobile devices. Mobile technology will also provide smart personal financial management services and make product recommendations while allowing consumers and investment professionals to quickly connect and interact through text, voice, and video.
Loan officers will text or call a consumer regarding a missing signature on a lending document, then provide the consumer with a secure app for signing on their smartphone or tablet.
Does this sound far-fetched? According to Javelin Strategy & Research, mobile banking adoption has a
Additionally, smartphone capabilities are only beginning to be exploited. Facial and voice recognition, interactive video, advanced image processing, beacons, and interactive voice response, combined with cloud-powered artificial intelligence and 24/7 convenience, make mobile-centric banking inevitable.
For now, the transition is incomplete, but bankers can make the mental shift and begin positioning their institutions for a mobile-centric future.
First, banks should take note of the fact that mobile developers are moving away from monolithic apps to smaller software components that provide flexible and interlinked sets of capabilities such as transactions, scheduling, social media and e-commerce. Scrutinize your mobile vendors' latest technology and consider whether they can bring leverage to your other channels.
Second, get interactive video on your mobile roadmap for both smartphones and tablets. Consider virtualizing the help desk as a way to ease the bank and customers into video meetings.
Lastly, bypass that teller software platform refresh or if necessary, consider renting a cloud-based teller system. This may seem radical, but why lobotomize your teller system and processes when customers are clearly moving to other transaction channels?
The transition to mobile-centric banking will be complex and expensive, but the outcome will be worth it. Whereas some people argue that reduced in-person interactions will cause banks to lose their grip on customers, the reality is that mobile channels can actually help banks strengthen these bonds. Utilizing mobile-centric banking, financial institutions will provide consumers with day-by-day and even moment-by-moment guidance through their financial lives.
Glen Fossella is a technology industry executive with a background in payments and branch automation. Follow him on Twitter @glenfossella.