Bank branch automation means more access to human support

Stemming the tide of bank branch closures is in the interest of both customers and the organizations themselves. Having a physical location gives a sense of reassurance in local communities, reinforcing the brand and giving people somewhere to go when they have more important or immediate needs.

Of course, there is no denying that bank branch networks have been struggling in recent years. While the trend slowed somewhat since the world bounced back from COVID, there are still a large number of closures in the US. It’s the same story in the EU where there was a fall in bank branches from 186,000 in 2008 to just 106,000 in 2023.

What is bank branch automation?

Bank branch automation is the use of advanced technology by financial institutions to improve the customer experience in a cost-effective way. The idea is to achieve the best of all worlds, so that banks can remain at the heart of local communities and customers have access to support, even if they’re going less.

There are different types of branch automation. One example of this is Artificial Intelligence-powered ATMs. Technology like this can have a number of applications, from forecasting the cash demand of the machine to enhanced facial recognition systems to other machine learning applications.

But, while delivering cost savings, technology like AI ATMs don’t ensure all aspects of branch operations meet retail banking customer expectations, particularly when it comes to personalized service. When a customer visits a bank it isn’t always simply to carry out cash transactions or other self-service solutions.

They also require one-on-one support from a human agent.

Does technology kill customer service?

This is the primary fear that customers have when new technological approaches are introduced. It comes down to this one question: “will I be able to talk to a human when I need one?”

There is a prevailing fear that new technologies will get rid of bank employees, removing the very reason that customers still go to traditional branches. And it’s certainly in a bank’s favor to do everything they can to maintain customer service excellence.

One Forrester report found that the economic benefits of customer loyalty are huge, sumizing that a 10% improvement in a company’s customer experience score can translate into more than $1 billion in increased revenue and other benefits.

For banks looking to embrace a new model of branch banking, the voice of the customer can not be ignored in the transformation. Technology must enhance customer service – not kill it.

The branch automation mindset

In Deloitte’s 2023 Customer Service Excellence report, the executive summary begins with the tagline:

“Elevating Human Experience is key to succeed with Customer and Employee Experience, as well as with Operational Excellence.”

Of course, the only way to achieve this is through advanced technological solutions. Even so, the focus must always be on improving customer interactions and offering digital solutions that meet primary needs.

So, what do customers want?

Access to human expertise

But the fact is that most people don’t go to physical branch locations when they have a query or routine task that could be dealt with online. Instead, they go for support with more complex issues such as loan applications, credit applications, or similar. In other words, they want real-time support on bank products or in making large decisions.

Continued customer satisfaction is built around a banking experience that features the branch staff at the heart.

Hybrid branches: Cost-effective access to support

So, it comes down to this. How do financial institutions use modern technology to build a branch environment that offers the right mix of self-service convenience and branch staff support?

AI ATMs, while innovative, only solve one half of the equation. To reach branch customer experience excellence, retail banks need to embrace a hybrid approach.

The key is to find a digital branch solution that allows agents to appear remotely, choreographing the branch customer experience from a separate location – and empowering them to service multiple branches at once.

Valiant: Branch transformation technology in action

This is what Valiant Bank did. Valiant Bank is a Swiss retail bank for private individuals and SMEs. As with most banks around the world, they were facing a decrease in footfall, with a reduction of 35% in personal assisted transactions. In response, the bank was forced to reduce their opening hours, with over half of their branches open for just three hours a day in 2016.

It got to the point where the bank needed to make a decision. They either had to start closing branch locations or find a new approach. They chose the latter.

By embracing a new approach – powered by the Unblu Brach digital reception – the bank was able to transform their failing network by making it cost-effective, profitable, and available to the public.

Increased access to agent expertise

The initiative was a success. Not only did Valiant manage to achieve high levels of customer satisfaction and have one agent serve up to seven branches, but they were able to open branches in three new areas – which boosted profitability.

However, the hybrid approach had other advantages when it came to meeting consumer expectations. Because of the remote setup, the agents who served the locations could call on support at any time.

If a customer comes in with a specific need that the agent can’t meet, they can invite a colleague to join them remotely. In this way, they have solved the issue of providing an enhanced customer experience through modern technology.

Embrace branch transformation with Unblu

The financial industry must change and embracing branch automation systems, biometric technologies, and other technology solutions is surely a part of it. But well designed modern branch experiences must go far beyond this.

Balancing business performance and branch productivity with consumer needs requires and innovative solution that prioritizes customer interactions.

Unblu Branch is an innovative branch solution that allows you to optimize your branch network and remain at the heart of your local community. With remote agents and advisors able to serve multiple branches, our interactive, on-site solution is cost-effective, profitable, and provides customers with a broader service offering at any location.

Interested in finding out more?

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Bank branch automation means more access to human support – not less