Banks

Banks should position themselves via the branch

Banks have had many digital offerings in their portfolio for years. But their customers are often unaware of this. But banks can not only make their service, but also their branches fit for the future, believes industry expert Vincenzo Fiore.

According to ING New Technologies Survey 2019, two-thirds of Germans (63 percent) want financial services providers to provide them with the latest financial management technology. But that does not just apply to the digital world: the physical bank branch is still important. It is the central point of contact between the bank and the customer. Because still 70 percent of respondents prefer to go to the bank branch. Consumers continue to have a great need for face-to-face services, especially on major topics such as mortgages or loans. Banks should not therefore consider their branch networks and physical locations as a disadvantage. They are much more of an opportunity to position themselves.

In branch provide for good customer experiences
Traditional banks are optimizing their digital offerings for the benefit of their clients, taking advantage of their size and investment opportunities to gain an edge over digital institutions and fintech. The bank branch is a decisive factor that many financial start-ups have so far neglected. Because new technology solutions can also improve the customer experience in the bank branch. For example, self-service devices such as ATMs could also offer other services, such as the purchase of concert tickets or personalized ads when charging. In other European countries, such as Portugal or Italy, investments are already being made in branch networks and local digital experience. There bank branches are opened rather than closed.

Nearly seven in ten ING respondents surveyed across Europe currently use mobile banking. This may be due to the increase in Internet usage. But these channels do not always provide full service and are just as infallible. Access problems or IT outages can lead to customer frustration and negatively impact satisfaction. That is why it is important for an optimal financial service to offer a convincing banking experience offline as well.

Not just seeing PSD2 as a loss-maker

Fintechs, however, often lack this infrastructure. But the European Union has it in mind: The new customer authentication regime for PSD2, which will apply from mid-September, will allow bank customers to manage their accounts through third-party providers. Thus, all those customers who currently have an account with different providers can view their finances at a glance. Digital transformation is not automatically a loss of financial services. With technology investments, banks can offer each client exactly the banking experience they want, whether it's with the language assistant, smartphone or bank branch.