On a recent episode of “Banking Transformed,” host Jim Marous interviewed Will Smayda, Head of Financial Centers at Bank of America. Bank of America previously shrank its branch presence from 6,000 branches to 3,700 branches. Now, they are opening 150 new “financial centers” at $5 million a pop. Smayda discusses how physical locations aren’t dead…they just need to be rethought when considering financial services branding.
In essence, Bank of America’s transition to financial centers is all about focusing on relational (rather than transactional) service and meeting people where they’re at.
What lessons can you take from this as you assess your physical locations in an ever more digital environment?
The Physical Safety Blanket
Most consumers appreciate the continued presence of physical locations…even if it’s just for emergencies.
53% of households still visit their local branch. Older generations prefer performing transactions in the branch, while younger generations prefer digital transactions. However, all generations prefer getting financial advice in a physical location.
People want the safety blanket of knowing they can talk with real people about big financial decisions. But many (especially younger generations) don’t want to come in for run-of-the-mill transactions.
This shows that physical location strategies aren’t black or white. They exist in a gray, phygital space of your financial services branding.
Redefining Service
Physical locations no longer work if they remain transactional. As Bank of America and the data highlight, people enjoy performing transactions online. So, how will you redefine the consumer experience?
You must prioritize relational service. You must train solutions-providers rather than button-pushers. You must make physical locations a digital complement rather than the main event.
Here are some more specific ways service is changing:
- Staff are idea-havers, not order-takers – Consumers want consultation and help if they come in…not something they could have done themselves.
- Pass-offs are ending – Being volleyed from teller to member service representative to someone else is frustrating. People want an all-in-one banker to make things easy.
- Service is becoming more human – In an AI age, people are increasingly seeking out authentic advice and interaction. This means your service must go beyond a robot phone tree and offer real warmth and ingenuity.
Your Next Moves
So, what are your next moves? There are two places to focus: strategy and service.
Strategically, you must discuss the place (no pun intended) physical locations have in your financial services branding. Ask why you are building new locations. Assess what the design of your locations facilitates – transactions or relationships? Even ask the big questions of if locations are worth it at all in your market or if you need to totally shift your location strategy the way Bank of America did.
When it comes to service, you need a team that’s ready for the shift. Adjusting your locations does little good if you don’t have human skillsets to complement them. Train your team to provide consultation and solutions. Train them to act with confidence. Train them to exceed the transactional.
Are you ready to start their training? Book a free consultation with us today, and let’s prepare your team for a future of service where consumer experience and financial services branding link.
