Originally posted on NCR Corporation’s blog
Guest Post By Josh Linder, Director, NCR Business Consulting
Popular press has argued that the branch is obsolete and that consumers are shunning the branch. Traditional financial products are being replaced with prepaid cards as cited in the Wall Street Journal.
Coming out of the great global recession, the key challenge facing banks is that non-interest expenses (NIE) are difficult to contain in the face of a changing consumer, and the emergence of new entrants into the banking sector (notably the growth of credit unions and virtual/online banks).
Branches are expensive to operate, yet they have been proven to be the best channel for sales and customer retention. There is no better place for meeting face to face with clients to provide advice, deepen the relationship, and sell high margin products. The key to success is reinvention of the branch to meet the needs of the new tech savvy consumer who has grown skeptical of traditional banks.