The future of retail banking belongs to banks that emphasize personal service, not just for owning numerous ATMs and offering online bill paying, argues author Joseph A. DiVanna, an independent consultant and author of books on technology and the financial services sector.
Make no mistake, he continues, banks must understand the effect that technology is having on their business, as well as the impact of loosening regulation and an increasingly competitive environment. But customers' financial needs still require the intimate contact and access to information that only branch services provide. Banks that succeed will know how to adapt their services to their customers' changing needs because, as the author points out, "customers have now become shoppers and view banking services as single commoditized products, rather than mechanisms to facilitate a total relationship of services." The winning banks will be those that adapt and retain customers for a "total relationship."
The best way to do so is by providing diversified services and adapting them to the evolving lifestyles of aging customers. Banks have to be nimble to accommodate these transitions effectively. And with investment and banking options becoming increasingly complex, an educational component is crucial, too; customers will demand human interaction for explanations as they navigate through their financial options.
Of course, online services will continue to be part of retail bank offerings in the future, but those e-services must be easy to use, helpful, and able to function properly without glitches, the author says.