Other parts of this series:
- Digital Transformation: Are Branches Still Relevant in a Digital World?
- Digital Transformation: 21st Century Consumers Still Expect a Human Touch
- Digital Transformation: A Digitally Enabled Network Still Holds Significant Value
- Digital Transformation: Manage your Branch Network through a Kit of Parts
- Digital Transformation: Empowering the Front Line to Deliver Distinctive Interactions
- Embracing a “Phygital” Bank Experience
In today’s digital and customer-centric environment, banks are seeking to redesign their branch experiences to be more relevant to the customer. With many different locations and rapidly changing needs, branch networks need multiple formats with varying objectives. However, creating and managing 3-5 branch formats and a host of capabilities throughout the network can be complicated and time consuming. Banks need the ability to quickly respond to a changing environment and rapidly develop internal capabilities.
To be more agile, banks should seek to break down their branch networks into components – creating standardized, LEGO®-like parts that can be replicated throughout the network. Even after a bank has determined which branch formats to pursue, management of the network can be difficult unless there is a consistent approach. A kit of parts empowers banks to make changes, prototype new formats, and quickly assemble and re-assemble branches that deploy standardized capabilities answering to the rapid pace of the market. The benefits are multiple:
- Improved return on investment through lower cost
- Fast delivery of individual modules, creating quick wins throughout the network (vs. a branch by branch approach)
- Re-usability of design across formats and sizes
- Consistent customer experience across all touchpoints
To build a LEGO®-like kit of parts for the branch network, banks should consider the following steps:
- Define the Customer Interaction & Experience
Banks need to understand the ways in which customers interact with staff and tools within the branch, and map out the ideal experience. Banks may want to pursue a relationship-based, advisory model or increase proactive customer interactions. The customer experience will also depend on the branch format – flagship, sales, service, etc.
- Create Zones to Match the Customer Experience
Based on the customer experience, banks should create zones that match the customer’s needs. Each of these zones will serve a specific purpose in the customer journey and can be deployed dynamically into the different formats within a bank’s branch network. For example, zones might include “Sales & Advisory”, “Exploration”, “Transaction”, and “Community”.
- Design a LEGO®-like Kit of Parts and Match to Zones
Each zone should have a set of parts that can be selected based on the branch format. These parts bring to life the intent of each zone, and allow flexibility in building the branch.
- Build Pre-determined Capabilities for Each Part
Finally, each LEGO®-like part should include easy-to-use capabilities across branch staff, processes, and technology. These pre-designed capabilities allow the branch to rapidly respond to changing demands at the pace of the market
Breaking down the branch network into LEGO®-like parts ultimately simplifies bank investments in new capabilities. Banks looking to update their branch experiences and adapt to customers and the market will be able to develop one set of capabilities and technology to use across the entire network. A LEGO®-like approach also clarifies the customer and associate experiences and makes them consistent so that customers will recognize the various zones and parts across the entire branch network, while staff will understand more clearly their roles and responsibilities.
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