The history of customer-facing branch technology in the UK over the last decade is a chequered one.
Outside the core need to provide cash withdrawal ATMs, banks have experimented with technologies that aim to enhance the customer experience at every point of their approach to and journey through the branch – from cameras which recognise customers’ eye prints to using Bluetooth to broadcast invitations to visit a branch. They have also introduced a stream of new self-service units into branches to migrate transactions away from counters, reduce costs, and improve customer/staff engagement. Some have opted for “all in one” ATMs offering multiple functionality, while the current trend is to offer multiple single-function units carrying out different tasks.
Many of these innovations and pilots have either withered on the vine or disappeared completely over the years, but it does now seem that a best practice picture is beginning to emerge:
Approach
Research shows most people ignore and cannot recall branch window posters, and over the years banks have tried to improve visibility and merchandising by using digital window displays. The heaviest user of outward-facing branch window screens was Alliance & Leicester, and several years ago Lloyds TSB piloted a 3M projector system to create innovative “digital window posters”. Both pilots were dropped, and Santander’s current pilot of digital window displays at its “lounge” branches is the only use of in-window digital in UK branches. Several years ago, HSBC tested Bluetooth transmissions to passers-by to entice them to visit the two branches involved, but this pilot was quickly dropped.
Arrival
Banks’ current focus is to use proactive meeter/greeters in the banking hall, but technology has always played a part in this. Some banks have piloted bank cards embedded with RFID chips which identify the (type of) customer as they enter the branch, but these pilots have been dropped.
More widespread was the launch by HSBC of its touchscreen MatchMaker units into 200+ branches (pictured right). These allowed customers to select the type of activity required – for example Business, students and Premier. Despite claimed reductions in queue times, these units were not popular and have now mostly been removed. Interestingly, NatWest’s new branch model uses a similar touchscreen to offer choices such as “I want to open a new account”, “I have an appointment”, “Counter transaction”, or “I have an enquiry”.
Meet and greet
Following on from its pilot of hand-held wifi units used by on-floor advisers, Barclays has just issued almost 2,000 iPads across all its branches to be used by on-floor meeter/greeters and advisers.
The iPads connect to the bank’s Gateway system to make appointments and bring up live account data, and some branches also have an on-floor iPad and mobile phone display used to illustrate apps such as Pingit.
Nationwide has also just started to use iPads as part of its new branch model which opened early in the new year in Guildford. There seem few downsides to basing banking hall management systems on iPads (especially given the wealth of apps on tap including bespoke ones designed by banks) other than connectivity.
In the queue
Few branches still use any form of ticket-based queue system, and most banks focus on using digital displays (often news channels) to distract waiting customers and lessen perceived waiting times. One recent innovation is the use by M&S Bank of pagers given to customers so they can be paged when an adviser becomes free, but such a solution only really makes sense in a high footfall environment and this innovation seems a little gimmicky. The tried and tested numbered cashier positions with call-forward audio/visual displays work perfectly well across all branches with a linear queuing system.
Self service
Branch automation has broadly followed one of two routes over the last decade. The first is centred around using single, multi-function ATMs to allow customers to withdraw or deposit cash, get statements, or even get their savings passbook updated. Key players adopting this approach include Nationwide and NatWest. The second approach is to use multiple single-function ATMs/self-service units in one branch, which was effectively pioneered by HSBC’s launch of its new branch model in 2006. This saw up to 50 or more separate self-service units in one branch spanning paying in, cash withdrawal, statements, coin deposits and dedicated telephone and internet banking units.
Halifax branches have a similar approach with multiple ATMs (pictured right), immediate deposit units and telephone/online booths. Research by HSBC found a customer preference for clearly labelled single function branch automation, and this approach is clearly winning the day as evidenced by the new branch models of NatWest and Nationwide, which have moved away from multiple-function single units.
What of the future?
One thing is certain: the increased use and popularity of smartphones and iPads has made it much easier for banks to cost-effectively roll out new self-service and sales contact options. Equipped with an iPad, advisers can simply connect a customer with another adviser as needed.
Similarly, fixed screens and keyboards allowing customers to browse a bank’s website now look dated. The way forward for branches is to capitalise on the public’s familiarity with – and love of – online access via smartphones and tablets, alongside a clear preference for multiple self-service units each offering a different service or function.
Best practice on the UK financial high street is probably reflected by Barclays’ decision to give branches iPads alongside its recent rolling out of free unrestricted wifi in all its London branches. This not only reflects branches keeping up with customer expectations for wifi availability, but also provides the backbone for branches to capitalise on apps and innovations.
In the US, Bank of America is currently outfitting its cashier positions with QR codes to allow customers to use their mobile phones to download the mobile banking app, and in the UK Sainsbury’s uses QR codes on at-till financial advertising panels to promote its current financial campaign. Assuming that best practice in ATMs is now identified as essentially the HSBC and Barclays model of multiple single-function units, then wifi, smartphones and tablets seem finally to offer banks an effective, efficient way of enhancing the typical in-branch experience.
Jeremy Ridgway is a director of Keyfact, which offers insights into all aspects of financial services offered through branches, stores and supermarkets. Keyfact has visited over 5,000 branches in the UK and Europe since 2001 to analyse branch activity, sales processes, design and staff effectiveness.
BT’s Agile Bank features new technologies designed to improve the customer experience. Take the virtual tour.
