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Banking – A cat with nine lives
Dr. Nicos Rossides: CEO Masmi Research Group
Bud Taylor: Director Consulting Masmi Research Group Introduction

The death of Branch Banking Technology is killing the industry’s retail Internet Rules young tech savvy! Customers are dying more than brick and mortar customers!
Maybe. But to date we have not completely cut off the head of the bank face-to-face Hydra. Things can be different in twenty years, but they are not radically different from today.
But we want to be in denial. Whenever we are confronted with the evidence of the survival of bank branches, we find ways to reject it. Thus, the research found in the UK by Deloitte & Touche released in September 2002 that 80% were held by the bank customers in the industry, and 52% use it the preferred route. Similarly led to a Gallup survey in the United States in April 2003 that 83% of Americans visited their bank at least once per month on average over the previous year. It is easy to ignore these studies – we can not dismiss it as a date

When we receive information, we update the studies about the impending demise of the branches .. For example, American Bankers Association survey showed in the summer of 2007 that 36% of U.S. consumer bank branches as the primary method. If this is the kiss of death? Not really. It is 36% is still the largest group for a channel. Online banking was followed at 23% in second place, from ATMs at 21% to 8% by mail and telephone banking to 5%. Damn, thought we had it!

Ok, Ok-Bank-branch still exists, but it is only for old and infirm? You know, move those people who have difficulties and it would be convenient to have their banking business of doing at home. Yes, in this group. Well, perhaps it is they cling to the legacy of the past, but it means that young people do not do business with in a public place? The evidence to be confused matters further. the 2007 survey by the American Bankers Association has found that those who go a bank branch generally elderly;. but rather a significant 25% do so under the age of 34 years personally by side with older people and their banking when these children learn?

Even if you look a little closer to the network of branches in New York, we come to the same trend. In September 2007, the New York Times that the industry fell by 11.5% of visits between 1995 and 2000 but increased 28% between 2000 and 2006 What can we conclude from this.? Many things, but the impending demise of the branch network is not.

If we expand our field of view of banks, we find that the younger generations, as physical retailers, in their world, where technology is getting dressed, think buying online for the latest electronic gadgets. This is not the case. Apple’s retail stores are a magnet for young consumers, and this proves to be a good business to be. These stores now around € 0250000000. The annual revenues of € 0.2 billion and rising -. with a profit margin above 20% is huge by the standards of retailing. Of course we must be careful here. Is it really possible that the bank transaction to compete with the retail experience from Apple? It may not be possible, but it is a good target.

Why do not meet the customer the effectiveness of the technology
? As long as we try, we can not make the case that the retail bank branches have died in the U.S., Europe or in emerging markets. It can be down, reduce, or reduce, but not die. That may be good news for customers, but he has bad news for bank managers. Branches are the most expensive shops. Computers were invented to process millions of transactions cents per transaction. To do this from your home phone, or by car, please! You do not have to go into a building, nice people’s houses. Banks must continue capital in information systems and technology to the treatment volume to invest, but rather not the flight of capital structures and operating costs for the individual.

Why not just bank customers, “Stop” from the branches? Why not efficient according to the principles of good business and complete its transactions by machines? Now, research shows that the confidence Masmi assumptions (a term somewhat difficult, but critical) is an important engine of choice, and tends to the confidence of people will be delivered better, “banking” as a machine

, says “my money”. Is so important for customers to entrust to a transfer of their personal wealth that a man – in the event that a person understands the value of the transaction, while the machine does not see that as a transaction. It is an interesting hypothesis and a research organization Masmi We confirmed it will see that customers want more than one transaction. You want to personalize their relationship with the Bank

This desire for a relationship can be stronger on. Bank customers in many other areas, because the banks have high switching frequency barriers are basically artificial restrictions on a type of business compared to – they want choice, if not customer choice, they want compensation .. When it comes to the bank, the fee is the adaptation of the transaction. Customers tend to say “… I can not easily be able to get my money somewhere else said, but I can my bank offers personal responsibility, if I want, I want to be sure someone takes care of not only my money -.. a machine that I want to see the people so that I touch her, and I would not travel across town to a strange country, to find them, I would like them down the block on the corner. “

Banks should see this as a great opportunity. Relationships are the essence of loyalty and they fell into the lap of the banks. The banks, which is to strengthen further their business anonymously lost in a world of increasingly competitive pressure for faster, better, cheaper is a call of the siren in the banking sector, commodity, a competitor may dominate at any time until someone -.. another shaved a point in a transaction. Customers give us the answer to ever-smaller concentric circles to reduce costs. You want a relationship. The question is whether we are ready to listen and can supply at lower costs. The bank wins, listen. It is his customers who buy to hold more and refer more to the bank to third parties. For the foreseeable future, banks will continue to invest, but wise in her. Branch network, the fact that branch banking is expensive is irrelevant – it has to do

, since you have to make the investment, it does not make sense to maximize the performance, strategy development branch does of course do so, what we do we need to meet customer expectations for two things :.?!?. Operational Excellence in the mechanical (Size ago), and the obligation to draw in the dynamics of the relationships (emotional dimension)
The customers want are more of a “pain-free” p

Our bank manager with the operational part of the mechanism in order. You understand that, you can control it, it’s the right brain. The banks have a good handle their missions far from a domestic point of view you have transactional figures and they know how by the numbers -. From the perspective of the customer, you manage to go immediately into the definition and implementation as soon as class parameters, such as:. the effectiveness
o measure the relationship between inputs and outputs what it costs How to complete a transaction as tellers does it take to serve, to 100.? Customers and how many square feet of floor space is needed for 100 clients and how long the computer takes a lot of it to process a transaction?
o service level, time brings into the equation, as implemented. Time required to complete a transaction? Time to solve a problem?
O Quality of Service, precision brings to the table. Number of transactions without errors? Number of complaints resolved at the first level

These are the essential elements. We know how to measure transactions, to identify gaps in services and take corrective action. But these elements are essential only ante is the “pain” of the transformation;. But that’s not all the game play is not where we stop yet, often the managers do not just want it not … .. go further from here is comfortable, but not enough “profit” and that, as banks
differentiate differentiation have about improving the dynamic relationship that customers with their bank -. and the focal point of this relationship is the branch of course, we can “humanize” the IVR system, the recognition of the complainant’s name. and can evoke an emotional connection to a Web site by integrating your avatar in the transaction. But the effectiveness of a machine or technology, in this regard? How smart technology does not fail to overcome cynicism customer? For now, at least, our research shows that most people interact with humans, not machines. What is this group of customers who prefer? know

customer-focused business strategy

Masmi we find that when customers have their needs met, so rational, that it is ready, a force relationship. What is emotional and personal. There is an enormous amount of research and documentation, support this assumption. Developers often very different views as to interact as our rational and emotional beings can. Clotaire Rapaille, for example, the thesis is from our “reptilian hot buttons” and reaffirms that our reptilian brain always wins emotional Antonio Damasio is the point of view that do not separate emotion and reason, but are very dependent on each other -. not lead, can following bank branches not to solve. these positions, but they need to address the point of the agreement, the matter emotions! It is a relationship between our memories, our feelings and our behavior

The need for emotional Banking connection during differ by the customer, not everyone is essential;. .. Probably the strongest for people who keep classes going so if we put money on the strategy of the industry, how can we spend the most of it to do and how we can tap into the emotional ties that customers seem to want to

First, we must all the business model in banking refocus. This may seem obvious, but in fact, the traditional service models to maximize the effectiveness of focus tend to back office with insufficient attention to the front office part of the equation.

Masmi research shows that high performance enterprise customers in the heart of its strategy. They articulate their strategic intent on the basis of a needs analysis to improve customer and its operational capabilities in alignment with. They realize that to represent the heart of their business is painless. transactions that arouse with connectors, the emotional reactions of the customers The best way to do it in a bank infused to be face-to-face is at a branch of a branch is more than a building -. It is at a stage where we can have a show, an experience for our customers, where you can connect with real people to be created. But we need to know which buttons to press. The research can give us some answers.
reliable customer reviews is difficult because the complaints do not particularly reliable -. reference for many reasons, not least is the fact that the customers not to complain tend, even after bad experiences to get around this obstacle, we have a number of research methods used for the internal target “of standards for customers,” align with outwardly directed “customer promise” These methods include the strategic research customer retention programs to to understand the drivers of customer behavior and corrective action;. the performance of operations;. puzzles and see if the promise is to provide customers

All these methods aim at the unspoken desires of the customers by printing them on to a relationship face to face in a store supplied discover instead. What we have learned that relationships with loyal customers in a sense, the activation of the person of deep conviction of what should be a bank. We all know that the five senses, the emotions activate. you see, hear, smell, touch and smell. They have the personification of their client bank to be adjusted. That is, how the experience of banking services to the customer’s expectations of what the bank should

The industry may be none of these experiences to improve until we know what customers want – And that can vary across industries, for example, that some customers want their offices to appear “and safe”, while . another branch people expect “casual and informal way” to be treated Moreover, the sector is “friendly meeting place,” a social experiment; .. while the customers all over the city a feeling of “efficiency and want economy “

The customer experience of the law has a business purpose – it contributes to the profitability of additional sales Relationship building is oriented advice and service profile require agencies within our newly designed physically a better design of more qualified staff. certainly necessary in order to represent the industry to focus on improving triggers emotions -.. move a transaction relationship building branches
Winners find ways, this personification and increased value to their work activities as neuroscientists tell us We are emotional beings before we are rational. If we were fully rational person would smoke and eat all organic. Customers may find it difficult to express their needs, but they come to their store will be comforted by the feeling that people in their bank is “one of us”, “… I feel good about my bank, they understand me. “

emotional response to customer satisfaction begins at the parking lot can not find a room creates anger. If the path to the door clean, feel most people a feeling of comfort when the door opened slightly as she confidently to feel that things are working well with your bank what happens when they come it is sure to foster a sense of security is there to make music feel welcome What TV while waiting for the service -.? the financial information that helps them feel update, how the transaction is completed, how the staff dressed? they have a sense of professionalism? Reception on recycled paper mediate in order to feel responsible for the environment or is it stamped with the logo of the Bank, they feel stylish The beauty of the branches is that it can be configured to be adapted to local needs – one size does not fit all is a question of “staging” at the junction for research experience customers, we can determine how the Activation of the emotions and customers coming back for more …

The branch is the highest point of contact for the customer by providing their bank “it is.” The branch engages deeply with the emotions of the customer. It is the branch of the strongest relationship and feelings active site of a bank may be easy to navigate, offers and ATM transactions can be effective, but key -. only the effectiveness of a dimension says of a complex network requirements of a banking partner automation Slick us much. on professionalism, safety and concern for me if something goes wrong. I want to go to my branch and I
Bank branches and the credit crunch

Of course, do the headlines worldwide in 2008 marked by the effects of the credit crisis and the following banking crisis, bank failures, bankruptcies, government bailouts and nationalization potential party in some countries. billions of dollars into the global economy pumped been to prevent the failure of the banking system and try to increase liquidity, encourage the money markets.

However what impact this individual to the customer of a bank is difficult to assess at this stage. It is clear, if it fear to try before a collapse of some banks, the scenes of depositors to withdraw their money grew in importance in the media, as in the United Kingdom with the collapse of Northern Rock published in 2007. However, if this fear has permeated the customer at a level too general difficult to assess at this stage there is little evidence to date, customers of their bank owned concerns in the case -. an institution or of another or the government -. as long as their savings are and investments not at risk

And perhaps in these difficult times that the industry is an increasingly important with regard to basic play, a visible sign of the durability of a bank. and sustainability Masmi, research has shown that in emerging markets, where banks are still relatively immature, non-bank failures and governments rarely is important for many customers visiting the store – not only because it helps them to better understand the details of banking products and services but to provide as a way of reassurance about the stability of a bank. In a world where even banks are perceived in developed markets such as low can to acquire the branch of a symbolic status, it can offer customers what they really need : .. A feeling of confidence and a degree of confidence that their bank is here to stay and a relationship with this is not a glass tower on paid executives is a part of their lives, and consists of people like them -. brave people trying to build a good life and strive to serve with honesty and care. Ultimately, the decisive test of whether customers feel that their bank branches is an essential element of their lives.

Conclusion
The Branch is essential in life .. a bank, a large number of customers still visit the store every week, but branches should be more effective than simply transaction-level, they need to on a personal level, where relationships exist developed; .. And it is these relationships which is the industry from a transaction center in a predominantly do at home to loyal customers is good news for the banks and the crisis they face. Trusted banks and their branches are an important source of customer engagement and revenue generation.

customers have shown they want to have with their bank branch banks work now find ways to make the experience meaningful and satisfying for both sides

Source:.
processing branch Bank: The new reality of multi-channel, “CEO Eontec Limited and Mark Greene, CEO of Global Banking Industry, IBM Corporation, The />
banks race to add branches, “USA Today June 19, 2003
” within the Apple Stores, a certain aura enchants the faithful, ” New York Times, December 27, 2007
“How to speed up stronger retail sales for small businesses,” Martha Crawford, NBW Consulting Group, American Banker 8th Annual Small Business Banking Conference, />
” branch is dead, long live the branch bank, “said David Webber, The Banker, November 2000
” Long live the branch bank, “Greg McBride, Bankrate.com, 17 May 2004 />
Damasio, Antonio. Descartes’ error. .., 1994
teacher, was Proust a Neuroscientist Jonah in New York. Houghton Mifflin Company, 2007
Rapaille, Coltaire The Code of the culture of New York .. . Broadway Books, 2007
. In the bank branch frenzy peaked cap? “Sewell Chan, New York Times, 10 September 2007

About the Authors Dr. Nicos Rossides
. CEO Masmi Research Group

Dr. Rossides Masmi Group CEO, is a leading independent research organization in Central and Eastern Europe and the Middle East before he was CEO for Synovate Masmi he METC region. global head of solutions and general manager for his practice Loyalty.

Nico’s has over 20 years in market research and consulting experience, many of them to develop research infrastructure in Central and Eastern Europe.

Nico’s has published numerous articles in professional journals, newspapers published at numerous conferences and lectured at several universities and conferences

Bud Taylor. Masmi Consulting Manager Research Group

Mr Taylor is a senior partner Masmi where he advises, as they put their data in search of work. Masmi Before Director and Vice President of Global Consulting was for Synovate Loyalty. Prior to joining Synovate Bud was a partner at Deloitte, where he his. Change in practice in the southwestern United States

Bud is a naturalized U.S. citizen and over 30 years, he consulted with marquee customers .. in all major sectors and all regions of the world Bud clients include:. Microsoft Europe, the National Commercial Bank (the capital) of Saudi Arabia, Whirlpool Corporation, Sony Electronics and Chinese customer-driven change, unite as the customers, officers and employees in the process of organizational transformation shows that the Overseas Banking Corporation

Bud articles in professional journals and has published a book of business processes.

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