As technology advances, banks and financial institutions have been investing heavily in digital (especially mobile) channels, and have reduced costs by closing branches. Although this scenario leads us to imagine that physic channels are destined to disappear in the not too distant future, the big question in this regard is to find the balance between the two approaches and, above all, how to improve them.
Privileging digital channels is essential, but a number of factors must be taken into account. In other words, this means that even in the face of a reduction in the number of branches in their networks, banks and financial institutions must understand the importance of approaching such a process in a humanized way, that is , through empathy. Here, by the way, is an interesting fact: according to the American website The Financial Branch, 31% of customers who changed banks in 2022 only did so because their respective branches closed.
But the problem goes even deeper. According to Jean Pierre Lacroix, president of Shikatani Lacroix (a strategic design firm specializing in banking establishments), “banks must understand that adopting an exclusively mobile strategy to solve the problem of cost reduction actually means opening a Pandora’s box.” Lacroix goes further: “They’re really training their clients to leave them. And they need to understand that agency remains a key element in helping and retaining them.”
When it comes to everyday banking,digital solutions naturally increase the efficiency of processes through automation and consequently improve the user experience. However, the use of physic agencies can and should be re-evaluated. In any circumstance, it never hurts to reinforce, it is necessary that financial institutions act with more empathy than usual for employees and customers.
And what does all this mean? That even in the face of thecountless opportunities and benefits provided to banks through technology and digital tools, the human touch will still be relevant, especially in complex operations and large enterprises. The larger the size of the business, the more this human connection is needed.
The reformulation of physic channels
Whether he believed in the extinction of bank branches was therefore hasty. What can be said, without fear of making mistakes, is that there will be a major overhaul of these physic channels that were traditionally dedicated to transactions. According to The McKinsey Retail Banking Consumer Survey, 37% of banks saw their share of active branch users increase in 2021. The survey notes that 28% of customers still prefer to have their needs met in person, and this percentage jumps to nearly 50% when it comes to sensitive or complex situations, such as fraud and financial difficulties.
It should be noted, however, that customers have become accustomed to carrying out their operations through Internet banking and mobile devices. This trend, by the way, will be increasingly accentuated through smartwatches and wearables, among other devices. In contrast, however, agencies still play an important role in the customer experience. How? Po medio de a phygital approach, which integrates physic touch points with digital platforms.
Therefore, the bank branch comes to play a new (and important) role, and represents, in fact, a contact opportunity for advice on finances, business, investment options and mentoring, for example. The main objective of the phygital concept is to take advantage of the strengths of physic and digital channels to provide a complete, that is, more immersive, personalized and humanized experience to customers of all age groups, and in this way, promote greater engagement.
So that your financial institution can offer the best experience to your customers, it has Topaz’s Physic Channels, Digital Channels and Omnichannel solutions. Our solutions offer a customer-centric digital experience that goes beyond conventional personalization, combining technology and optimization with channels to make your institution more effective and secure to offer complete and agile financial products and transactions.