Huffington Post: Cognizant’s Banking and Financial Services Head in the UK & Ireland Says Bank Branches Must Bridge Traditional and Online Worlds to Stay Relevant

“Whilst arguments have raged for many years about whether retail branches will die out due to the impact that existing and emerging technologies are having, no one has an answer,” writes Tony Virdi. “Whereas many banks are trying to optimize their channel strategy, which can potentially result in driving efficiencies by closing down branches, others are exploring opportunities to open new ones that go beyond traditional banking, offering more service-orientated experiences.”

Virdi writes that instead of transactions, administration and cash—which can be completed easily remotely—in-person branches can evolve to offer personalized service, advice and sales. “They can give consumers an opportunity to engage, talk and obtain knowledge and understanding of finance and money, thus strengthening the relationship with the bank and fostering customer loyalty,” Virdi suggests.

According to Virdi, for every branch that closes, new channels of engagement with a bank’s customer open. “It is only the institutions that refuse to embrace new technology and more collaborative methods of communication that may ultimately falter,” he writes. “The banks that drive change the fastest and in the most visionary manner, to optimize the balance between maintaining in-person branches and offering alternative means of engagement, will be the ones who go on to succeed and perhaps become leaders.”

Virdi notes, “Bank branches provide a way to connect customers, almost an olive branch in the sense of offering a bridge between traditional and modern worlds, although they also need to continuously evolve to offer a significantly enhanced customer experience.”

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