Valley National Bank (VLY) in Wayne, N.J., is joining the trend toward self-service banking with a plan to upgrade the technology at most of its 204 branches over the next five years.
The new branches will cater to a younger, digitally savvy generation of bank customers, Valley National spokesman Marc Piro said Monday.
"The entire project is really a response to customer demand," Piro said. "We're providing a more convenient banking experience."
Valley National will begin rolling out the upgrades in early 2014, according to a Monday press release. The $16 billion-asset company plans to introduce a number of new digital services. Interactive video teller machines in branch lobbies will give customers the ability to conduct remote transactions with staff at all hours of the day. Enhanced ATMs will allow customers to make deposits without using envelopes and eliminate the need to enter the amount of money they are putting away. Cash recyclers, which automatically dispense and accept money, aim to reduce customer wait times. The company will also offer a remote deposit option through its new mobile banking application.
"In order to remain a competitive financial institution, our traditional branch network needs to adapt," Valley Chairman, President and Chief Executive Gerald Lipkin said in the release. "These restructuring efforts will help Valley modernize its branch presence while still providing the convenient and personalized service our customers expect from us."
Valley National will also continue to offer in-person services at all of its branches, according to the release.
The company expects the equipment, technology and infrastructure required for the upgrades to cost several million dollars per year. "However, we anticipate cost saves provided in conjunction with the implementation to largely mitigate the initial cost," Valley National said in the release. "In the next few years noninterest expense is expected to contract as a majority of Valley's branch network migrates to the new platform and delivery channels."