Branch innovation
Many banks have already closed, or plan to close, at least some of their
branches. Branch networks are costly to operate and, increasingly, customers
choose to purchase financial products through digital channels. But reducing
or streamlining their branch presence, or moving to the extreme and adopting
a wide scale branchless model, may not be in a banks, or its customers,
best interests. Customers value branch interaction78 percent of US-based
consumers said they expect to visit their local bank branch just as much or
more frequently in the next five years.1 As a result, banks must reposition their
traditional branch model. By taking advantage of digital innovation, banks can
transform the branch network to offer banking services that are more personal,
immersive, and relevant for their role as an everyday bank.
1
2
Transactional activity
77 78 73
76
18-24
68 66
66 61
26-34
40
Deposit
cash/check
Withdrew cash
36+
Checked my
balance
Value-added activity
48
19
Made/set up a
payment
52 47
46 44
41
18
Got information
on product
or service
46
17
Changed my
details
39
16
Opened an account or
purchased/renewed a
financial product
Interactive screens
Self-service remote advisor
52
38 37
Biometrics
4
5
6
Branch transformation
Modern bank branch networks must be innovative, providing highly
personalized contact in the context of being digital ambassadors,
advisors for complex services and problem solvers. Simpler, yet more
comprehensive, they need to diversify branch types and integrate digital
services. Such branch networks can give customers multiple and flexible
service options, 24 by 7. They could also lower banks cost to build by
33 percent and their cost to operate by 25 percent,7resulting in greater
business agility, competitiveness and growth.
Banks canand shouldstart now to transform their branches, taking
three key actions to protect and grow their customer base:
Rethink the network
Using analytics-driven customer insights to make better decisions and
match branch elements (for example, sites, types, in-branch features and so
on) to local target preferences, particularly millennials.
Upskill branch talent
Equipping branches with the right soft skills and technology capabilities to
engage customers, solve their problems quickly, offer advice and sell more
products and services.
Rewrite branch key performance indicators
Assess customer engagement using survey results, increase digital connections
via branches, such as clicks and apps, and monitor metrics ongoing.
Accenture analysis
About Accenture
Frederic Brunier
frederic.brunier@accenture.com
Follow us on Twitter
@AccentureStrat
Watch us on YouTube
www.youtube.com/accenture
Stay connected
This document is intended for general informational purposes only and does not
take into account the readers specific circumstances, and may not reflect the
most current developments. Accenture disclaims, to the fullest extent permitted
by applicable law, any and all liability for the accuracy and completeness of
the information in this document and for any acts or omissions made based on
such information. Accenture does not provide legal, regulatory, audit, or tax
advice. Readers are responsible for obtaining such advice from their own legal
counsel or other licensed professionals.