In last February’s blog – Best Practices for Building an Enterprise Wide Electronic Channel Strategy, I wrote that financial institutions should consider a paradigm shift in strategy that includes a focus on e-banking services, service components, and delivery channels.
This strategy is also important as the process will help determine how all banking delivery channels may change after deploying mobile banking. What’s key in this risk based approach is development of an effective delivery channel mix for future online and face-to-face banking interactions. Prolific use of mobile devices doesn’t necessarily spell the demise of traditional banking channels, but instead, powers customer’s demand for more information and interaction through multiple touch-points, some of which must be available anytime, and anywhere.
As your mobile delivery channel gains traction, more customers will regularly utilize their mobile device for simple transactions such as transferring funds, depositing checks, and checking balances (as you expect); however, you may also find that your front-line employees spend more time handling complex or difficult transactions. This potential issue was highlighted in a recent Gallup Research Report, which examines the banking channels customers use and for what tasks and how the delivery channel mix directly affects the health of each customer’s relationship with their bank.
In an effort to maximize your FIs customer relationships, you may want to revisit the June 2009 FFIEC Supplemental Guidance on Internet Banking Authentication. This guidance requires FIs to identify features for each online banking service and delivery channel, and to categorize online banking customers by service use. The next time you update this risk assessment, you may want to consider expanding the framework to include a similar analysis for other more traditional banking delivery channels. This may lead to new ways to combine high-tech with high-touch - think of the airlines manning their check-in kiosk areas with customer service representatives…
Forward thinking FIs keeping an eye out for changes in customer behavior may consider future utilization of video tellers and concierge type banking services. Alamo Federal Credit Union has recently launched such a service. An AFCU representative arrives in an AFCU branded SUV to meet members in person at their office, home, or coffee shop to open accounts, take and complete loan applications, help members switch from other FIs, and assist in setting up automatic bill pay or mobile services.
Could the “branch on wheels” concept be the panacea combo to satisfy the "Generation C" - always connected, communicating, content-centric, computerized, community-oriented consumer? Only a risk-based approach to Know Your Customer base will tell.