For many businesses, a now COVID-19 world has quickly shifted their customer service, specifically those in the retail financial services market. Without question, the pandemic has accelerated the need for drastic changes in how customer physically interact with financial institutions. The shuttering of many branches and driving consumers to self-service has intensified the need for financial institutions to control costs and improve asset utilization. While the nation emerges from lockdown at varying speeds, the need to accelerate the shift to self-service models is critical for the health and peace-of-mind of associates and customers alike.
Join us on Thursday, August 27, at 1 p.m. CT as Jon Voorhees, President of BankDistributionStrategies.com, for a discussion on the role of ATMs, self-service, and how COVID-19 has impacted retail banking. To register, click here.
In preparation for the upcoming webinar, we had the opportunity to speak with Voorhees before Thursday’s webinar hosted by American Banker and Credit Union Journal.
What do you hope listeners will gain from the upcoming webinar?
With banks now under pressure to transform how they conduct day-to-day transactions, I want to share what I’ve learned from my 40-plus years in branch and ATM strategies. Industry leaders will hear the evolutionary tale of how the ATM has evolved into a key FI channel. While this type of conversation isn’t new, it has still taken a long time for most banks and credit unions to figure out how to do it successfully. Overall, I want attendees to learn how the things they are doing today, such as streamlining their business, will allow them to focus on the biggest initiatives that will set them up for transformation in the future.
A recent report published by Allied Market Research expects the ATM managed services market to reach $9.97 billion by 2027 due to COVID-19. Therefore, what is one of the benefits you hope financial institutions will experience with bank transformation?
While I understand it’s hard for financial institutions to grasp the notion of reducing costs at a time like this, they must learn how to focus on things that grow revenue faster by acquiring more customers in an increasingly fractured marketplace where fintechs are outpacing them. Cutting costs is straightforward, but growing revenue is much more difficult.
We are seeing more and more studies that support customers wanting more from the ATM than just the ability to withdraw cash. While COVID has been a driver for financial institutions to transform, do you still think this would have happened in a pre-COVID era?
Without a doubt, COVID-19 has been an accelerant in how branches think about branch transformation. Over the course of five months, we’ve witnessed branches go from temporary to indefinite closures. I think this time has allowed financial institutions to evolve how they provide customers safe access to cash and other banking transactions.
As someone with a wealth of experience who has witnessed bank transformation over 40 years, what is one of the primary factors FIs should consider when evaluating branch transformation?
A strong readiness to truly understanding their customer base. Europe is far ahead of the U.S. in going cashless, and China is more advanced than the U.S. in digital payments. What I do know is that cash isn’t going away anytime soon here in the U.S., and if banks want to reach profitability, transformation is going to involve increased use of digital channels. It’s imperative that financial institutions start building for a long-term haul. Your most profitable groups aren’t digitally forward so you prep them for the ones that are paying your bills today. Meaning, the group that isn’t making you the most money today will eventually garner you the most revenue in 15 years. How are you preparing this group today for tomorrow’s future? While there’s no definitive answer today, financial institutions must understand that their customers’ needs are going to change in 15 years.
Want to know more about bank transformation? Register today!