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Branch Banking: Technology vs. Face-to-Face Interaction

July 13, 2011

Brett King, the author of the bestselling book on the future of banking—BANK 2.0—discusses the impact of technology on branch banking in this article on his site.

The Modality Shift of Banking

An excert from the above article grabbed my attention.

“It has long been argued that a face-to-face or human based interaction is vastly superior to that of a technology one. There are two issues that undermine this school of thought. Firstly, regardless of whether a face-to-face interaction might be better for a customer, increasingly we’re opting NOT to go the face-to-face route in favor of the simple convenience and utility afforded by technology. Secondly, with the incredible advance in recent times of customer experience, persuasion and interaction design, and the application of usability sciences, the fact is that technology is now competing head-to-head with traditional approaches to customer engagement, and winning.”

As the FMSI Teller Line Study points out, technology is certainly impacting how we are all interacting with our branches.  The real delicate question to ask though is how quickly technology is changing how the population as a whole is interacting with their financial institution?  The data from the FMSI Teller Line study points out (see below) that this change is and will be very gradual.  However, if a financil institution does nothing to address this change, such as changing how they schedule their branches, they will undoubtedly eventually be seriously affected by this shift.

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