The iPhone effect
What do all these smartphones mean for branch delivery?
by: Suzi McNicholas
It is clear that now, more than ever, today’s consumers are heavily influenced by technology that is simple, cool and connected. Take for instance the smartphone. This device has completely pervaded consumers’ everyday lives, and now credit union members expect similar technologies to accompany more and more of their daily tasks, especially when it comes to banking.
This so-called “iPhone effect” has encouraged many credit unions to give an enormous amount of time and resources to expanding their online and mobile banking offerings. Rightly so.
However, even though foot traffic in retail branch locations has decreased, the branch still remains the No. 1 sales and member engagement channel among credit unions across the country. While digital channels are critical to meeting members’ transactional needs, the physical branch is still a key component of engaging with members face to face. Contrary to popular belief, consumers still value human interaction when it comes to their personal finances. But now CUs must find a way to service tech-savvy members who demand a better in-branch experience.
IDC Financial Insights predicts branch transformation will be an area of major investment over the next 12 months, with a 5 to 10 percent increase compared to 2014. Going forward, credit union branches will feature innovative architectural and visual design coupled with advanced technology, with a goal of maximizing the use of a branch’s staff and physical space.
Over the last year, some of the largest credit unions have even opened mini branches, providing members the option of face-to-face banking while shrinking their footprint and reducing operating costs by up to 60 percent.
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