Micro Branches For Banks

The micro branch concept is enabling you to increase and/or keep your footprint rapidly and with reasonable costs.

Banks are forced to close branches due to high operational costs. This is reducing their points of service and has a negative impact on their reputation.

11% of consumers left their bank in the past year—and consumer switching to virtual banks is at double-digit levels.

Source: accenture consulting 2016

We all know that customers want to open an account or take important financial decisions with the help of a teller and not online.

87% of consumers will use their branches in the future—and want human interaction when they go there.

Source: accenture consulting 2016

You want to have a better brand visibility? You would like to open new branches but you do not want to invest in brick-and-mortar branches? You want to open the micro branches quickly and you do not want to wait several months?

Consider a micro branch concept with the use of VTMs (Video Teller Machines).

Approximately all of the teller operated actions like you would perform them in a brick-and-mortar branch you can offer to your clients with a VTM. Open an account, verify the identity of the customer, print documents, scan signed documents and even issue personalized cards instantly.

Banks want to have a greater footprint in areas where they are not yet strongly represented. A traditional brick-and-mortar is very expensive and usually needs several months until it is operational. The VTM does not need a classical branch environment to run. The price and deployment time is far less then the standard branch would require.

Banks want to be present in malls and other locations where they usually do not place a branch. Here is the VTM the ideal solution. A VTM can handle about 100% of the jobs a teller in a branch can do.

The customers have a human touch when communicating with the teller via video and they usually appreciate this, following different newspaper articles and survey results.

Interesting infographics about the future of videobanking. Click here to see it.

videobanking

Source: bankingtech.com

The teller can do cross and up selling because he is actively talking with the customer and present on the screen. If necessary a product specialist can join the conversation to give the customer detailed information about the product he is interested in. Here a VTM might even be better than a branch because the specialist in need can be added because he does not need to physically be present at the side of the customer.

As mentioned above the customer can be identified and sign a contract.

Depending on the local regulators a VTM in a Micro branch can be used to do a full KYC (Know Your Customer) during the onboarding of a new customer. Wet signature on A4 size printed documents which can be collected by the machine in a dropbox or digital signatures on PDF documents? No problem.

Don’t forget that branches are very important – despite of mobile always on banking.

KEY FINDING 4
The branch is alive and well

The bank branch of the future will be different, not dead. Consumers see themselves actively using the branch in the coming years. It will be a vital destination where digital banking and human interaction meet.

Source: accenture consulting 2016

Some possible additional locations for a VTM could be airports, metro stations, business districts and residential communities and rural areas.

If you are interested in learning more about this promising concept you might want to contact Scale360. They have successfully implemented the micro branch concept using modern programming technologies like Scala and MicroServices in combination with the latest cutting edge video teller machine technology in real life already.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s