CHICAGO and SOPHIA-ANTIPOLIS, FRANCE-Advances in touch-screen technology, video analytics and biometrics are all being put to use to craft the next generation of branch banking.
Increased electronic services, automated offers and flexible branching are all on the horizon, as evidenced by a demonstration made as part of the Filene Research Institute's "Future of the Branch" Colloquium. The event was held at the headquarters of Accenture, a global consulting firm, but via videoconferencing attendees received a guided tour of what future generations of branches could look like, thanks to Accenture's offices in Sophia-Antipolis, in the south of France.
The branch of the future starts before consumers even enter the branch, with the ability to use digital screens to quickly switch between ads targeted to specific passersby based on age and gender. Content can be centrally managed to push specific products for specific locations and adapt marketing strategies based on location, time of day and more.
Digital ads can also include scanable QR codes so that those outside the branch can scan the code and receive more detailed information on their mobile device. Digital ad space can also be made available to local clients to advertise their own products, providing additional revenue streams for the FI.
For higher levels of interactivity, consumers can also scan their phone or another ID to check in to the branch, which enables branch staff to call up information on that person-such as transaction histories and previous interactions-along with personalized offers.
The Inside-The-Branch Experience
Once inside the branch, the focus is more on self-service through electronic channels, starting with ATMs that rely on biometrics-such as fingerprint scans or palm scans-to identify the user. Accenture employees leading the tour pointed out that these technologies are already being used by Azteca Bank in Mexico, as well as by some FIs in Brazil, Japan and parts of Europe, including Russia, Poland and Turkey.
Touch-screen ATMs can also generate user-specific QR codes for offers on ancillary products, as well as offers at other local businesses and digital receipts.
For transactions that require personalized service, branches can feature smaller, modular workspaces for tellers, which are adjustable to provide more privacy as needed and adapt to changing flows in branch traffic. Branch staff can also be equipped with tablet devices for roaming the facility or to quickly bring up information such as client portfolio data, amortization tables and more.
In-branch cameras also help with more digital advertising inside, again using biometrics to judge the number of members waiting to be served, along with age and gender, and then switch to the ads most likely to be of interest to those consumers.
For more in-depth transactions or loan applications, personal banker spaces can be closed completely or left partially open for varying degrees of privacy. Touch-screen technology similar to tablet devices (though larger) can also be used to pull up information for clients, along with the ability to drag and drop products and services to a customer profile.
The Costs Involved
Nigel Smith, Accenture's managing director for financial services in North America, noted that even the big banks can't afford all of this technology, but that doesn't mean CUs should think that it's out of their reach. He stressed that "the trick is to sift out the data that works for you" via a piecemeal approach.
On the other hand, Glenn Strebe, CEO at Air Academy FCU in Colorado Springs, observed that while some of that tech might be ideal for branches in densely populated cities, it may not be as applicable for branches that serve as a destination point. He also pointed out that there are security and privacy concerns involved-things that might not play to American consumers' behavior patterns.
"You have to have a fundamental premise, and I believe their fundamental premise was that foot traffic is going to come by or will already be there," he said. "Our philosophy is that we're trying to eliminate foot traffic." (See related story).
