Bank Branches will die!
Yes. In less than a decade, the bank branches will become a thing of past and will be dead.
Here are the top five challenges faced by banks and its branches and reasons why bank branches will die :
Growth in Technology
In 19th century due to the belief and confidence people had in banking, the growth in banking sector was surplus. This consequently motivated many banks to open many branches in every city, town, suburbs and high street.
But the demand for branches has decreased. It is very clear that branches will squeeze and not the bank because of mobile and internet technology. When all the needs of people using banks are fulfilled via mobile and internet banking, then what and where is the need of so many bank branches? And yes, technology growth has become one of the significant challenges faced by banks and its branches.
Many are aware that if you do not keep innovating and adapt to the change, you will lose the battle. To win the battle and for the banks to long live or survive in the long run, banks have to rethink.
New system of bank branches should be built. But building such technological environment in the remote areas where bank branches are about to establish is one of the greatest challenges faced by banks today. Only the bank branches needed for sales must be kept open. Current distribution system of bank branches will not yield good results. Will an Apple store be opened in branches in every city, town, suburbs and high street? The answer is a definite “No”. So banks have to inculcate innovations in their business actions.
Lay A Different Path To Financial Lifestyle
Forecast clearly shows that future of banking will be “Mobile 24*7”. Banks cannot be resistant and they have already started taking giant leaps in mobile technology. More than an applicant’s profile with good analytical skill, programming application develop skill is most wanted today.
Mobile banking is proactive and also predictive of customer needs. This is a welcome feature in mobile banking and it has attracted many customers. Mobile and Internet banking caters to the customer’s needs more than a bank branch could and also at customers own convenience. Banks have started to socialize and use social media to increase customer base and to achieve 100 percent customer satisfaction. Achieving this cent percent satisfaction by creating impact in the lifestyle of people is one of the crucial challenges faced by banks of India.
Thus, the different financial life style preferred by current society will shrink the bank branch networks.
Banks Have Realigned To Accommodate The New Internet Age
80% of the people are served their needs through internet & mobile banking. Adding to this is self-serviced branches. These stations are serviced and monitored via satellites. ATMs, remote advisors are meeting the requirements of the common.
In case if one resistant to these changes, and feels that one wants a face-face virtual interaction, what / how can a bank cater to the needs of such customers? Before you could think of such a scenario, Banks has found ways for their customers to feel a relationship. These banks have halved their customers. They knew that their customers are not money but human.
Customers can have face to face virtual interaction with bank advisor in real-time. But creating this facility is one of the major challenges faced by banks. Only few have faced this challenge and caters this for its customers. If they want advisor to be met in person, then they can book or schedule an appointment with the consultant at their own convenient time from their own place. They can also have a conversation in their home. All the queries which were usually addressed on a visit to bank branch have now become unnecessary as technology has brought all the services to their own pocket.
People Will Visit A Branch Only If The Rules Say So
When all the purpose of banking is solved through mobile and internet, where is the need for someone to visit branches?
The basic aim with which banks were established, i.e. the deposits and withdrawal could be accomplished with ATMs. If doubts /clarifications required for any scheme or other issues, you could consult virtually and there is no need for your physical presence at bank branches.
But when you are said, it is a rule that you have to be physically present and your originals has to be furnished, then comes the situation where your visit to a bank branch becomes unavoidable. So people will only visit a bank branch only when the law/rule compels to do so. ☺