FIRST NUMBERS
Just make it easy
Traffic in Citi’s branches is down 50%
Exploring the retail bank of the future
A
re bank branches slowly becoming a thing of the past? If declining footfall in branches is anything to go by, the answer may be yes. “Traffic in our branches is down 50% in the last five years whilst in the same time, period digital transactions are up over 100%,” says Felimy Greene, Citi’s regional head of digital banking. Citi in Asia draws some 20 million visits to its online properties every month and 95% of all transactions already happen outside a branch. “We already have a relatively light footprint of smart branches in high impact urban locations and we are continuously optimising this through a mix of iconic city locations, transit hubs, retail malls, etc.,” he adds. Standard Chartered even went as far as having a corporate alliance with Shinsegae Group, a top retail group in Korea, which allows the bank to deploy upscale, fully digitised branch outlets at Shinsegae shops so clients can have easy access to their services. The human touch Bankers and finance experts have long claimed that despite the rise in digital banking, clients still demand the presence of brick-and-mortar branches for high value activities. “To a large extent, banking revolves around trust and relationships. Whilst digital banking can help to speed up
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customers’ mundane and repetitive transactions, the human touch is still critical for engaging customers and developing trust,” says Choong Wai Hong, head of community financial services, Maybank Singapore. Drastic changes ahead But with the nature of branch interactions changing at the speed of innovation, what will the retail bank of the future look like? “The branch of the future is possibly a fraction of what it currently is, both in terms of physical space as well as manpower size. The reduction is not just in response to the trend towards more digitisation, but also a function of increasing land and labour costs,” says Choong. “I see more digital capabilities being integrated in the branch, for instance, video technology on the ATMs, video conferencing meeting/interview rooms where customers can talk to relationship managers or product or wealth specialists,” reckons Kariuki Ngari, global head, distribution network at Standard Chartered. “Physical branches will still remain relevant but must adapt to serve a very different purpose and form. As most clients will prefer the convenience of digital channels, the branches will mainly support the delivery of more complex sales and advice and exception handling.”
Felimy Greene
Choong Wai Hong
Source: Bain & Company
Kariuki Ngari