No “Big Bangs” in Branch Transformation

No “Big Bangs” in Branch Transformation
Glen Fosella wrote a good piece for Bank Systems & Technology this week, where he suggests: “While many banks are rethinking their long-term strategy for expensive branch networks, there are steps banks can take now to reduce costs and inefficiencies in the branch while providing a better customer experience.” We couldn’t agree more. Like it or not, banking (along with every other retail segment) must adapt to address seismic changes in consumer preferences and usage of digital channels. The trends are real, inexorable and accelerating. The trends are also global, with Nordic countries well ahead of North America in terms of internet usage, digital banking usage and right-sizing of the branch channel. For example, ABN AMRO saw more customer mobile banking logins than internet banking logins in early 2012. The Mobile banking channel now represents over 60% of all customer non-branch interactions. It currently operates 400 bank branches in the Netherlands. It once operated over 800. The branch channel needs to be more effective and efficient. But, what exactly is the “branch of the future”? Celent sees a marvellous variety of operating models and physical designs being deployed, but no one gets there in one “big bang”. To Glen’s point, while banks develop their long-term omnichannel delivery plans, there are great benefits to making incremental changes to the network NOW. In fact, Celent finds that approach largely common among banks with highly evolved branch infrastructures. The figure below shows the journey taken by a large number of banks globally. Baby Steps Gradually, most bank branches will look and operate very differently than most do now. But, getting there is difficult, expensive and risky. In our opinion, wise banks get there through a series of measured steps, while testing and learning as they go. But, do get going!
Bob Meara About Bob Meara

Bob Meara is a senior analyst with Celent's banking practice and is based in Atlanta, Georgia. His research focuses on the branch and ATM delivery channels, customer analytics and check and cash payment processing technologies. A well known authority on remote deposit capture, Bob has led multiple consulting engagements including proprietary research projects involving financial services hardware, software and the impact of self-service on branch banking.

Before joining Celent, Bob was the director of product marketing at Alogent. In this role, he positioned and launched a series of Check 21 payments solutions.

Prior to Alogent, Bob also held positions in marketing and brand management at BellSouth, Hayes Corporation, and Procter & Gamble in addition to being a commissioned naval officer.

Bob earned a Bachelor of Science in Applied Physics and Electrical Engineering from Case Western Reserve University.


  1. There is also skills gap in branches — they need to be able to help customers with mobile banking issues and assist in more types of transactions, e.g., instant issuance of lost cards.

    • Bob Meara Bob Meara says:

      Very good point, Scott. Making the transition isn’t easy. Different skillsets, more training, higher compensation all required. We’ve written case studies on a number of FIs that have made this investment with terriffic results.

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