One of my mantras regarding bank branches is that as the number of annual visits a customer makes to a branch decreases, the impact of each individual visit increases.
In a world in which folks can conduct most of their banking remotely, with thousands of options for doing so, physical branches remain most banks' clearest differentiators.
While many pundits have preached of the decreasing relevance of bank branches for decades, a large percentage of a group known as "bank customers" haven't listened.
As I was organizing my home office recently, I came across a collection of a hundred or so name badges from conferences, meetings and speaking engagements throughout the years. One from 2013 caught my eye.
That badge came from a visit I was invited to with the head of branch distribution for one of the largest banks in the country. Upon seeing it, I remembered one of the catchphrases he and I used when discussing the evolution of bank branches.
He described how their research found that even as the number of visits their customers were making to a physical branch each year was falling, having an accessible branch and ATM remained customers' top priority.
Even as their mobile products became more comprehensive and widely adopted, customers still cared first and most about access to a branch.
During our conversation, we jokingly coined the phrase, the "just-in-case-maybe" branch.
Even customers who did not intend to visit a bank branch on a regular basis still demanded access to a physical branch — just in case they needed one.
Speaking and writing about that discussion at the time led to more than a few gurus suggesting to me that this was all changing quickly. It wouldn't be the case for much longer.
The breadth and functionality of a banks' mobile offerings would soon surpass access to a branch in importance to customers.
And, 10 years down the road now, mobile banking products are better and more ubiquitous than ever. Yet, I'd suggest customers' desire for access to a physical branch remains as high as it was in 2013.
Technology that was seen as best-in-class and only offered at a few major operations 10 years ago is practically table stakes for banks to compete today.
The options available to customers to avoid physical branch visits may be better than ever. Yet, they do not meaningfully differentiate one bank from another.
I found myself reflecting on that fact as I stood in a line with nine other folks outside a branch recently. While waiting for it to open, I noted that its drive-up windows were filled, as well.
While it was technically feasible to handle the two transactions I needed remotely, they were detailed transactions that I felt more comfortable conducting in person with a competent banker.
Like many households, we have multiple banking relationships. I hadn't visited any branch for personal business in several months and hadn't walked into a branch of this bank in almost a year.
I didn't need to … until I did. And this visit was going to go a long way in shaping my impression of the entire organization. Moments of truth, so to speak.
The young lady who unlocked the door promptly at 9 a.m. to let us in smiled and greeted each of us as warmly as a Disney Magic Kingdom employee. The slight annoyance that had built up from standing in line was quickly lost as she wished each of us a good morning individually.
She even greeted a couple of the regulars by name as they walked in. The bankers behind the teller lines were polite and helpful and the manager who was called in to help with my transaction was, as well. All in all, it was a very pleasant experience.
It wasn't until I was walking out that I reflected on the fact that I had waited in a line outside to stand in a second line inside. Handled poorly, a customer could feel like a head of cattle being processed. Instead, I walked out feeling valued by the folks at that bank.
I speak to bankers often about the difference between accounts and relationships. A bank account is a product. A banking app is a tool. A banking relationship is when a customer feels reasons to continue to choose you over others to provide that product and tool. Convenient access to a branch factors greatly in that calculation.
It's important to remember, however, that customers do not visit branches. They visit bankers.
And the levels of courtesy, respect, and professionalism they experience during those visits do more to solidify actual relationships than almost anything else.
Maybe that won't be the case in another 10 years. But I wouldn't bet the bank on it.
