FINANCE
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The bank machines
With more than half of all consumer transactions now done digitally, Kirsten Levermore considers what’s next for retail banking
Glass doors swoosh lazily on to the hushed lobby. Lined with counters, desks and squat, square offices, you approach a customer service ambassador for directions. “Good to see you again,” they say. They remember you from your last visit – and all the others since you first joined the bank. Handing over your bank card, you explain the reason for this trip. Smiling, the ambassador ushers you towards a security gate. Striding straight through the barrier, you emerge to a second, smaller room, with agents waiting to deposit your money. Picking an empty booth, the whole transaction takes less than two minutes, and you’re back on the street. And you haven’t interacted with a single human being in all that time. The world’s first robot-run bank branch, the Shanghai outpost of China Construction Bank (CCB), prides itself on efficient, amiable service – all without the need for flesh-and-blood staff. Stuffed with the latest in facial recognition, virtual reality, machine learning and financial technology, CCB’s robotic branch ‘employees’ dramatically cut labour costs whilst significantly speeding up the in-person banking process. Led by branch ambassador bot, Little Dragon, this crack-team is the focal point of CCB’s strategy to future-proof the bank branch model. In a world where 52% of all consumer banking transactions now take place digitally, and bank branches are closing at a breathtaking rate, saving the traditional branch model is no small task.
Rooted in one place
If you store your money in a traditional bank (or possess a Visa credit card), it is highly likely you have at some point found yourself on foreign soil with no access to cash or credit. When you were unfortunate enough to discover your bank had no branches in that strange land, you faced exorbitant phone bills, SOS calls to faroff customer service reps, furious, jetlagged, sunburnt, even diarrheic, attempts to explain the issue – and several stressful cash-strapped hours. And whether you’re away on business, vacationing, working abroad, living in an isolated area or simply unable to reach a branch during office hours, digital banking can be a whole lot more convenient. Digital-only banks aren’t just good for current-account management, either. According to the Way We Bank Now survey, conducted by EY for UK Finance, customers are increasingly using apps to access services such as savings, credit cards and mortgage and investments accounts.
Growing up so fast
Digital banks hold one further convenience for customers: it’s considerably easier to get an account with digital-only banks than with traditional banks. Forget, as you download an app or click a link, the days of proof-of-address, birth certificate and employment contract – digital banks need only a quick facial recognition scan, a snap of official identification and, hey
FROM HUMAN TO ROBOTIC Bank branches of 2018 take on many forms
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‘Pull up a chair’ boutique and Mini-branches, inc. ATMs, coffee-house environments, computer terminals for often complete with online banking and cheque refreshments and activities depositing machines
Dialogue Q4 2018
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Drive-through tellers and ATMs
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Virtual branches (via mobile and online platforms)