Certainly! But that future (as with most traditional institutions) is contingent on a complete re-think of the brick and mortar value proposition. Let”s be honest, for most people today the local branch is unnecessary for traditional banking needs. That being said, there is a wealth of untapped value within these establishments that could provide a service so desperately needed in our society today. Here are three things the banking sector should consider in order to capitalize on its valuable resources in brick and mortar branches.
Recognize that their value must move from transactional to transformational.
Banks must recognize that we have a far more resourceful consumer then we ever had at any period in history. As a result, banks must look for ways in which they can adapt and evolve to a changing consumer dynamic, wherein convenience to and connection with specific consumer needs outside of traditional banking still requires a personal touch. I recently moved my accounts to a local bank after being with one of the largest banking institutions in the country. I moved because I wanted a human being that could make decisions beyond the submission of paperwork. In the age of mass customization, consumers are looking for a unique experience they cannot get anywhere else.
Recognize unconventional emerging markets in banking.
Move toward a mass customization model of financial planning and spending.
Every major institution in our society – education, government, religion, etc., falls into 1 of 2 categories: Evolving or dying.
So how do you know which category you fall into? Easy. You should know after answering these two questions:
- What is the relevance of my role, organization, institution, or industry in today”s market?
- If my role, organization, institution, or industry were to disappear today, would the world even notice?
So for those of you in the banking industry, do not limit yourself to the traditional roles you were assigned in the 20th century. Go beyond thinking big and re-think the context. There are new market opportunities in the midst of these changes just waiting to be seized.