Retail Banking Needs Retail Strategy

34% of bank customers visit a branch at least once per month, according to Accenture.

The death of brick-and-mortar retail has been predicted for more than a decade. Instead, retail is seeing a renaissance – growth of new locations and investment in existing stores – driven by a shift from transactions to experiences.

The same is true for branch banking. Research shows that all generations visit branches, and Jamie Dimon’s assertion that “Customers like to visit their money” still rings true.

How can banking take a page from the retail playbook to strengthen branch networks and transform transactional spaces into environments that offer advice, consultation and brand experiences?

Retailers who are thriving know the shallowness of “pretty picture” store design

Taking a deep dive into the customer experience with a retail mindset requires a focus on customer journeys, visual merchandising, flexible formats, localization, brand storytelling and human-centric moments of surprise and delight.

This approach allows you to prioritize customers and experience but needs to be implemented with scaling and execution in mind, so you don’t end up with a one-off while the rest of your network continues to underdeliver (experientially speaking). 

A tiered approach to refreshes, renovations and rebranding

Adopting retail thinking for a branch refresh means you develop a complete understanding of your branch network and its footprint. Size, condition, traffic volume, location needs and branch opportunity all need to be considered. Cookie-cutter won’t cut it. Perform a realistic, data-based analysis of your branches. Use a tiered approach that prioritizes key locations and audiences, establishes investment levels and optimizes impact.

Whatever the branch size or investment level, your brand expression needs to be consistent throughout the network. Developing branding playbooks ensures that branches deliver with a consistent brand standard.

Physical + Digital = Phygital

Customers spend significant time in the digital realm, where information is delivered quickly and transactions are seamless. Their digital experience with your bank and a multitude of other brands impacts their expectations when they enter a branch.

Integrating physical design with digital technology and brand strategy is table stakes in creating a meaningful, relevant branch experience.

What does this mean?

• Information should be easily accessible through ITMs, digital signage and your app. (Don’t forget easy-to-access customer Wi-Fi to access your app.)
  
  
• Brand expression should be the same online and offline. Environmental design guidelines that align with brand guidelines create consistency in execution.
  
  
• Remove friction and decrease waiting time by engaging with customers as they enter to personalize their experience.
  
  
• Allow customers to choose how they want to interact with your team members by creating customizable experiences. For example, offering a range of seating options – conversation over a coffee table, consultation at a high-top bar or meeting in a traditional office.

Branch development that delivers value

Ultimately, acknowledging that the branch experience runs parallel to the customer shopping experience is about one thing: ROI. You want to create value through upgraded customer engagement that builds trust, creates loyalty and sells additional products and services.

When done right, business is earned. Just like taking a page out of the retail playbook.