Deciding What's Next in Self-Service at the Branch Level
In the rapidly evolving banking landscape, self-service capabilities have emerged as a pivotal factor in enhancing customer experience and driving operational efficiency. According to one study cited by Forbes, 73% of customers want the ability to solve issues independently.
With customers' increasing comfort with technology and the ongoing demand for 24/7 access to services, banks are compelled to continuously evaluate and elevate their self-service offerings at the branch level. But how can financial institutions discern the most effective next steps in this digital journey?
This blog post aims to shed light on strategies banks can employ to determine and implement the optimal advancements in their self-service capacities, ultimately promoting convenience, satisfaction, and trust among their clientele.
Evaluate the Current Self-Service Status of Your Branches
To evaluate your branch’s current self-service capabilities, it's important to start by conducting a comprehensive assessment of your existing systems. Look at the volume and type of transactions being handled by your branch staff versus those being conducted through self-service channels.
Determine whether your customers can complete their transactions effectively and efficiently through self-service channels. Are there any transactions that are only possible through in-person banking that could be transitioned to self-service?
ITMs
Interactive Teller Machines (ITMs) are one self-service channel to consider. ITMs offer extended service hours and can handle a wider range of transactions than a traditional ATM. Look at the utilization rate of your ITMs, if you have them. If your ITMs are underutilized, you may need to educate your customers about their capabilities. On the other hand, if ITMs are heavily used, you might consider installing more.
Video Banking
Video banking is another self-service option. Evaluate how well your customers have adopted video banking. If you haven’t yet introduced it, survey your customers to find out if they would use such a service. It's a great way to offer personalized service without requiring customers to visit a branch.
Virtual Banking
Virtual banking is perhaps one of the most exciting innovations in self-service. If your branch doesn't already offer virtual banking, it's an area you should consider exploring, as many banks are already adopting virtual banking capabilities.
According to Moody's, "Virtual banks have surged ahead, increasing digital engagement with clients and simplifying the user experience, a phenomen(on) boosted during the pandemic. Lockdowns amplified the need for easy online access to products, services, and information. As we look ahead, financial services will become increasingly digital, likely benefiting digital natives."
If you do offer virtual banking services, continually evaluate its effectiveness. Track how many of your customers are using it, and for what types of transactions. Consider conducting user experience testing to identify any areas for improvement.
Remember, the goal is not to push customers away from branches altogether but to offer them a choice. Some customers prefer the convenience of self-service, while others still value the personal touch of in-branch banking.
Consider the Full Push to Digital
Transitioning to digital banking offers several compelling advantages that can significantly improve service delivery. Digitalization provides customers with the convenience of conducting banking transactions anytime, anywhere, through self-service. This 24/7 accessibility can greatly enhance customer satisfaction.
Moreover, digital banking can lead to cost savings by reducing the need for physical infrastructure and manual labor.
Digitalization also allows for the collection and analysis of customer data, enabling personalized banking experiences. For example, banks can leverage artificial intelligence and machine learning to offer tailored financial advice or product recommendations.
Finally, moving to digital can also increase transaction speed, reduce errors, and improve overall efficiency. It's important to note that while this transition presents significant opportunities, it's crucial to ensure robust security measures are in place to protect sensitive financial information.
Ultimately, you'll need to decide what your next best steps are to fully push toward digital banking. If you don't have the platforms, infrastructure, or hardware in place, these could be good places to start.
Follow the Demands of Your Customer
Listening to the needs and preferences of your customers is critical in the evolution of self-service capabilities at the branch level. Despite the growing trend towards digitization, there are still customers who prefer visiting branches for their banking needs.
Keep in mind that, although studies suggest customers like self-service, there can be significant fallout when self-service isn't integrated correctly into customer channels. Many banks have diverse customer bases that demand a hybrid approach, offering both advanced digital solutions and traditional, in-person services.
Get Answers Directly from Customers
To understand what your customers truly want, engagement is key.
You can gather information through customer surveys. Regularly analyzing customer service interactions, both online and offline, can reveal pain points and areas for improvement.
User experience testing for your digital platforms can also help you ascertain the effectiveness and user-friendliness of different self-service capabilities. Social listening — monitoring your bank's social media channels for customer feedback and sentiments — can give you a real-time understanding of your customers' experiences.
Lastly, consider creating customer personas, which represent different user types within your targeted demographics. These personas can help you understand the needs, experiences, behaviors, and goals of your larger customer base.
Integrate Self-Service Seamlessly
Finally, remember that the more aligned your services are with your customers' needs and preferences, the higher the chances of enhancing customer satisfaction and loyalty. Any self-service channels you launch must be integrated seamlessly into the customer experience, and they must always contain a human element.
At the very least, customers shouldn't have to settle for self-service if they want to speak to someone. A representative should be readily available, always.
To learn more about the future of self-service at the bank branch, don’t miss the next Future Branches event. It’s happening at the JW Marriott in Austin, Texas on November 28 - 30.
Download the agenda and register for the event today.