by Peter R. Rancie with Kristen S. Borchers
CONTEMPORARY BANKING in the United States is navigating through turbulent waves of transformation, primarily marked by a reduction in physical banks1 and a momentous thrust toward technological integration. With this metamorphosis, there emerges a landscape where the realms of digital mobile and web-based banking have unfurled unprecedented conveniences and accessibilities. However, shadowing these advancements are notable limitations, primarily the erosion of human interaction, which has historically been a cornerstone in cultivating customer trust and satisfaction.
In navigating through these challenges, innovative business solutions are essential in synthesizing technological efficiencies with the irreplaceable value of human touch. The seeds of the following human interface ideas come from one of the author’s youthful experiences.
Peter Rancie grew up in the northern suburbs of Melbourne Australia, in a government housing project. The local elementary school did not have a well endowed library. Most books were classroom sets of textbooks or readers. Peter recalls that his saving grace in terms of self education and access to a much greater variety of books was the mobile book library that would come each Friday afternoon, parking just a few hundred yards from the family’s humble, three bedroom, 1200 square feet home that housed nine people. That mobile library, with its ever changing supply of books made all the difference. He would use his library card to get as many books each week as the library would allow, and then devour each of them. Quite often he would be up late into the night, reading with a flashlight under the blankets after his parents, and his three brothers in the same bedroom, had insisted on the light being turned off.
The idea of a mobile library, which gave an impoverished neighborhood access to more books, is somewhat akin to the idea of BankMobiles. Wrapped vans, fitted with ATMs and computers for onboarding and servicing remote communities, and delivering financial literacy initiatives to unbanked and underbanked communities and families, offers a friendly, accessible and personal alternative or supplement to the digital age.
Another promising innovation that holds significant potential in reinvigorating human interaction within the banking sector is the concept of Virtual Banking Concierges. This innovative model marries technological sophistication with human empathy and expertise, fostering a platform where customers can engage in real time, virtual interactions with banking professionals. Unlike conventional automated systems, Virtual Banking Concierges aim to recreate the in-branch experience in a virtual environment, ensuring that customers receive personalized guidance, advice, and support.
The Virtual Banking Concierge system operates through secure, user-friendly platforms where customers can schedule and engage in video or voice calls with banking representatives. These platforms ensure that customers receive immediate attention, replicating the direct and personal interactions characteristic of physical banking environments. Importantly, the Concierge system is not just reactionary but also proactive. It enables banks to schedule check-ins, consultations, and financial health discussions, nurturing the customer-bank relationship continuously.
This innovative model mitigates the geographical and accessibility limitations that have been exacerbated by the reduction of physical banks. It ensures that banking services, characterized by human interaction and personal touch, are accessible even to those in remote or underserved areas. Furthermore, it elevates the level of customization and empathy in service delivery. Banking representatives, through virtual interactions, can gauge customer needs, emotions, and contexts more accurately, enabling a more tailored and compassionate service approach.
Moreover, Virtual Banking Concierges provide a bridge across the digital divide. They offer a supportive platform where customers, particularly those who might feel overwhelmed by technological complexities, can receive guidance and assistance. Through personal interactions, banking representatives can guide customers into and through digital platforms, beginning with something as simple as a phone call or an email, enhancing user comfort and proficiency in navigating technological tools.
In adopting this innovation, considerations on security, privacy, and reliability are paramount. The Virtual Banking Concierge platforms must embody robust security frameworks that safeguard customer information and instill confidence in the virtual interactions. Furthermore, user-centric principles for the digital experience (DX) has to ensure ease of navigation and accessibility to foster a seamless and enjoyable customer experience.
A third novel proposal is Community Banking Pods (CBPs). CBPs are a stepped up version of BankMobiles. These are larger bus style mobile banking units designed to travel to different communities, enabling banks to maintain a physical presence without needing permanent brick-and-mortar branches. The concept of CBPs is rooted in adaptability and community engagement. Each Pod is staffed with banking professionals who offer a range of services, from basic transactions to personalized financial consultations. They aim to foster a sense of community by being present in various locations on a rotating schedule, ensuring that customers can plan visits, much like they would to a traditional branch.
CBPs facilitate human interaction, allowing customers to engage with bank representatives face-to-face, nurturing relationships and trust. They also embody inclusivity by ensuring that banking services, imbued with personal interactions, are accessible to diverse demographic segments, even those in remote and otherwise underserved areas.
CBPs also engage in community education, offering workshops and sessions on financial literacy, digital tool navigation, and emerging banking trends, thereby enhancing community knowledge and comfort with banking processes. The essential difference between CBPs and BankMobiles is that one is an event style experience requiring a large team and significant planning, whereas the latter is more transactional, with even more flexibility. The updated CRA (Community Reinvestment Act) regulations are expected to encourage innovative banks and other financial institutions towards such solutions. Adoption of one or more of these community banking interactions will help bridge the gap between shrinking brick-and-mortar access, increasing population, and declining human interaction.
Veritas Chronicles is at the ready to shine its publishing light on institutions that take actions like those suggested to address the human/tech balance in banking and financial services, especially for the unbanked and under-banked.§
