The Evolution of the Bank Branch Operating Model

Bill Budde is the VP of Product Marketing for Hyosung. In this role, he helps banks and credit unions make decisions about branch transformation technology and unlock the value of those investments. Prior to joining Hyosung, Bill worked at JPMorgan Chase in both the Retail Banking and Merchant Processing business units, developing and implementing many self-service capabilities.

The evolution of bank branch operating models has been a consistent trend within the financial services industry over the last decade. New innovations have continually emerged, and banks have adopted a selection of those innovations that specifically fit their needs. Banks have evolved their branch models at their own individual paces, implementing digital components that augment or streamline their existing offerings. Changes have been slow but steady, and in general have focused on improving the efficiency with which banks can offer services to their customers.

The last four months have seen a dramatic change is consumer behavior. The amount of U.S. cash in circulation is at an all-time high, but in-person bank branch visits have dropped dramatically. Consumers are using self-service and remote-assistance options in record numbers for a variety of goods and services across all verticals. Customer interactions that have typically been solely offered in person have shifted to remote interactions over phone or video connections. Touchless customer interactions are becoming ubiquitous, from curbside pickup at the hardware store to home delivery by your local microbrewery. In some cases, scenarios where self-service was not even an option have now become self-service by default. These adjustments were relatively quick out of necessity, as businesses in many verticals had to immediately make these changes in order to survive. The circumstances that have required those behavior changes have persisted long enough now that many changes have become new consumer habits, and in many cases those habits will be permanent.

ATMs have provided basic self-service capabilities that included physical fulfillment to banking customers for decades. Banking customers are accustomed to performing simple deposits and withdrawals from primary checking and savings accounts via self-service, while reverting to in-person branch visits for transactions with other accounts or for more complex needs. When that in-person channel is taken away or severely curtailed, customers expect banks to provide alternate capabilities, just as other businesses have done. Expanded self-service banking options are no longer a convenience to customers that also offers efficiency to branch operations; they are a necessity in order to serve customers’ needs. Alternative service channels are no longer solely for the delivery of incremental efficiency gains; they also provide critical service resiliency when in-person service channels are temporarily unavailable.

Fortunately, these changes are aligned with advances being made by banking technology companies. The difference is that the priority and necessity around adopting these advances has changed. Hyosung’s long record of innovation in the areas of ATM cash recycling, optimizing field service for maximum ATM availability, and repeatable banking core integration processes to greatly expand available self-service capabilities are all key elements of new banking models that meet emerging customer expectations while enabling an optimized banking services delivery model.

Contact your Hyosung sales rep or your local Authorized Hyosung Dealer to see how Hyosung technology can help you meet the changing demands of your customer base.

For more information, see our new infographic about Banking Evolution.

See Infographic Here