Branch Transformation and the Data Differentiator

According to The Financial Brand’s 2019 Retail Banking Trends and Predictions Report, the use of data analytics and artificial intelligence (AI) ranked higher than improving the customer experience for the first time ever in retail banking

For over a decade, organizations have been embracing digital transformation, globally, at an increasing rate. In part because of the proven benefits that early adopters have touted, but more because consumers are responding by readily adopting advances in technology that improve the digital experience, especially for convenience-oriented services.

This data trend signals to retail bankers to gauge whether your financial institution is behind in the move to Digital Banking 3.0. Competitive pressures from peer financial institutions and FinTech entrants are normalizing this next phase of digital transformation — the ability to personalize and tailor experiences. Many financial institutions battle these competitive pressures in their ability to capture new clients and to retain existing ones. This is driving the need to create custom products and services to compete effectively. At every touch point, bankers must find ways to deeply connect with clients in a personalized way with data analytics and AI capabilities essential in converting data collected into meaningful messaging.

Financial institutions are compelled to digitize every retail delivery channel to build these personalized profiles for each client, and this includes the branch.

Data and In-Branch Self-Service

“The art and science behind digital transformation and enabling a branch of the future rests in the ability to respond to changing customer preferences. Making decisions about how to best serve customers now and in the future are made possible with data.”     -2019 Retail Banking Trends and Predictions Report

Digitizing routine transactions so that person-to-person conversations are focused towards advisory services not only improves the customer experience, it transforms the branch channel by enabling the collection of data at the transaction point. This data is used to build a personal profile for each client, enabling bankers to provide personalization experiences in the future. To collect that coveted data, employing self-service devices like the Personal Teller Machine (PTM), which integrates directly with a financial institution’s core, rather than riding the ATM rails, is key. This direct core integration provides the path to bespoke banking.

Three trends emerging for in-branch self-service banking that yield quality data:

  • Teller strategies shifting a majority of transactions from a teller to a self-service Personal Teller Machine (PTM)
  • Personalization, tailored product offerings, and messaging makes it essential to integrate PTMs directly to the core system instead of ATM rails
  • Digitizing transactions with self-service kiosks that eliminate the conversation, moving the person-to-person conversations to be about advisory services

Retail branch digital transformation initiatives that include PTMs have the best opportunity to be successful when they also deliver on desired branch objectives –

  • Align with teller staffing models to provide exceptional convenience-oriented experiences
  • Optimize operational costs and increased fee income
  • Collect data that enables personalized and tailored experiences for clients

To learn how to integrate self-service PTMs into your branch transformation initiatives, reach out to Source Technologies today!

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