We know that COVID-19 is challenging traditional banking habits. Within a week, institutions changed client strategies to encourage social distancing and do their part to flatten the curve. Some institutions moved to drive thru services only. Others transitioned to appointment only lobby visits. Some closed physical locations altogether in favor of digital banking and virtual meetings.
We don’t know when the United States will return to a sense of normalcy, but we do know that the way clients expect to interact with their financial institution will change post-pandemic. The good news is, the many financial institutions have already begun implementing changes that will help them be ahead of the curve.
Consultative Branches
It’s still too early to tell what the economic impact of the coronavirus will be. What is clear is that the need for consultative services and financial advice will be imperative as Americans navigate uncharted financial waters in a post-pandemic world. Financial institutions were already shifting more to advisory hubs pre-pandemic, and this trend will not only continue, but accelerate, post-pandemic.
In moving toward consultative banking, the need for flexibility among all branch staff rises. The universal banker/universal branch model allows for that flexibility, as all employees are trained for any type of client interaction. This will increase the need for more thorough training of employees to ensure a smooth transition of operations.
Continuous Digital Banking Improvements
Before COVID-19, most financial institutions were already heavily investing on improvements to their digital platforms. The most successful institutions are ones that are devoting resources to improving the client’s digital experience. The pandemic has quickened the pace at which clients are expecting more from their financial institution’s online portals. Not only will they want to view transactions and make deposits, but they will also want to apply for loans and have the ability to receive virtual financial advice from their banker. Financial institutions need to continue to invest on incorporating new features and functions on their online portals in order to retain existing clients and attract new ones.
Consolidation
In an attempt to maintain social distancing, many financial institutions have lessened the number of branches with their lobbies open. Most of these locations still have ATMs available for deposits and withdrawals. There has been a declining need to man every teller window for the last decade, and that trend will become more prevalent after the pandemic. Many financial institutions will find that they can be equally successful with less branches, if the remaining branches are advisory focused with properly trained employees. Institutions may decide to use interactive ATMs at their former locations to continue to serve clients in those areas. Interactive ATMs still allow for transactional activities with a virtual human element. They are cost effective and will contribute to the bottom line.
COVID-19 has changed the way humans interact with each other, including the way they do banking. These changes will continue after the need for social distancing ends. While no one knows for sure what the future holds, financial institutions need to be prepared to meet client expectations by rethinking their retail branch structures and continuing to develop new technology.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
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