# Why the bank branch still has a role to play for consumers Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-11-06 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: The Future of UK Bank Branches: Are They Here to Stay? Meta Description: Discover how UK banks are evolving to meet customer demands, with a focus on the enduring relevance of physical branches in a digital-first world. URL: https://financedigest.com/why-the-bank-branch-still-has-a-role-to-play-for-consumershtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/now-1736838988408-compressed.jpg) By **Carl Uminski**, Co-founder and COO, Somo Earlier in the year Nationwide announced a commitment to keep all their branches open until May 2021 as well as giving them a £80 million makeover. More recently, this month, Barclays have pledged not to close any branches in remote areas for two years. It would appear that [banks are starting to listen to customers](https://www.financedigest.com/how-close-can-banks-get-to-their-customers.html "How close can banks get to their customers?") and understand that there is a role for the branch to play. Despite the fact [more than a third of all UK bank branches have closed since 2015](https://www.theguardian.com/money/2019/sep/24/more-than-a-third-of-uk-bank-branches-have-closed-since-2015), it’s wrong to believe that the role of the bank branch has become redundant. New extensive research we have commissioned into consumer banking trends has shown that the branch is more popular and relevant than we’re led to believe in the media, despite consumers moving increasingly to a [digital-first world](https://www.financedigest.com/the-digital-first-world-financial-services-predictions-for-2022.html "The digital-first world: financial services predictions for 2022"). The research shows that over a third (35%) claimed the branch was the main place they did their banking; and more than 2 in 5 (43%) said they’d go to the branch in order to talk to a real person. This proves that branches still play an important role in making those [big](https://www.financedigest.com/trade-finance-the-small-brush-to-paint-the-big-picture.html "Trade Finance: The Small Brush to Paint the Big Picture") financial decisions we mull over. Although day-to-day online banking is pretty frictionless, it’s harder to understand more complicated financial products without speaking to someone who can [explain](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model") them face-to-face. Although with the mismanagement of the business in recent times, who knows what the [future will hold](https://www.financedigest.com/what-does-the-future-hold-for-corporate-payments.html "What Does the Future Hold for Corporate Payments?") for them. Similarly, in the US, Capital One opened over 30 coffee shop style branches, combining a relaxed atmosphere, good coffee, local produce and a community feel. So-called ‘digital lifestyle coaches’ roam the floor, helping [customers with their online banking and making the in-branch experience](https://www.financedigest.com/the-next-generation-of-customer-experience-in-banking.html "The next generation of customer experience in banking") far more intuitive and an real-world extension of their online service. Evidence shows we’re still searching for that sweet spot between technology convenience and a human touch. Earlier this year [a hotel in Tokyo run by robots was forced to lay them off in favour of humans](https://www.theverge.com/2019/1/15/18184198/japans-robot-hotel-lay-off-work-for-humans) owing to the dissatisfaction of customers wanting to speak to real people. Similarly, [Sainsbury’s recently reinstalled tills in their till-less London store](https://www.bbc.co.uk/news/technology-49652026) as consumers attempted to check-out in the traditional way, resulting in long queues. What’s the answer? Firstly, better self-serving options and a better blend of digital/ physical solutions to shorten queues and make the experience a lot more pleasant. [Banks have been quite quick to adopt](https://www.financedigest.com/why-banks-cant-adopt-digital-identities-fast-enough.html "Why Banks Can’t Adopt Digital Identities Fast Enough") self-service kiosks, with some (such as NatWest and Barclays) going as far as opening fully self-service branches with a handful of advisors on hand. But they must understand that they need to cater for a [wide range](https://www.financedigest.com/exclusive-wide-ranging-solarwinds-probe-sparks-fear-in-corporate-america.html "Exclusive: Wide-ranging SolarWinds probe sparks fear in Corporate America") of needs, with customers being at different life-stages and varying levels of digital/self-serve sophistication. Currently, most traditional banks do not make it easy when you need help and seem to miss simple opportunities where they can [improve business](https://www.financedigest.com/how-can-call-tracking-improve-your-business.html "How can call tracking improve your business?").So if you forget your pin number or have lost your [bank card](https://www.financedigest.com/can-banks-acquire-customers-with-biometric-payment-cards.html "Can banks acquire customers with biometric payment cards?"), you’re forced to wait a number of days for replacements. This is unlike the digital disruptors where their online experiences is all about self serving at speed in an [intuitive way](https://www.financedigest.com/intuitive-decision-making-could-this-approach-be-the-most-underrated-way-to-becoming-a-successful-leader.html "Intuitive decision making: could this approach be the most underrated way to becoming a successful leader?").While safety and security must still be paramount, [traditional banks need](https://www.financedigest.com/traditional-banks-need-an-overhaul.html "Traditional banks need an overhaul") to meet customer expectations. Banks should be [driving customers](https://www.financedigest.com/customized-innovation-to-drive-the-aids-related-cancer-market.html "Customized innovation to drive the Aids Related Cancer Market") to branches by allowing them to order online, showing them where their nearest branch is and having the card ready for them that day. Thinking specifically about data, [banks have an advantage in the sheer amount of data](https://www.financedigest.com/asia-shares-edge-higher-wary-of-us-bank-data.html "Asia shares edge higher, wary of US bank data") they have. They could use this responsibly to become more useful to customers. For example, if someone has a regular direct debit to a car insurance company, a bank could provide a price comparison to help them [save money](https://www.financedigest.com/saving-money-hacks.html "Saving money hacks") on renewal. If they create an imformative profile, a branch could know things about a customer at the click of a button that makes the experience more personal. Call it going back to the good old days but it’s the personal touch previous generations enjoyed when they walked in. [Finance is an industry](https://www.financedigest.com/future-of-the-finance-industry.html "Future of the Finance Industry") historically plagued by a lack of transparency, whether the PPI scandals or undisclosed security leaks. [Challenger banks](https://www.financedigest.com/the-rise-of-challenger-banks.html "Challenger banks") have capitalised on this by putting transparency at their heart. [Traditional banks can use branches to deliver coherent information using digital](https://www.financedigest.com/the-power-of-digital-why-theres-still-life-in-the-traditional-retail-banks-yet.html "The power of digital: Why there’s still life in the traditional retail banks yet") products. Skoda, for example, [recently unveiled a new app in dealerships that allows salespeople to compare Skoda models](https://www.financedigest.com/polypropylene-fibre-market-witness-a-spike-in-growth-pace-recent-improvements-in-pricing-models-fmi.html "Polypropylene Fibre Market Witness a Spike in Growth Pace Recent Improvements in Pricing Models: FMI") with competitor cars. It understands that [customers will do this anyway so why not make it easier for them whilst being transparent and confident](https://www.financedigest.com/instilling-customer-confidence-in-the-pandemic-era.html "Instilling customer confidence in the pandemic era") in their own product? The result was an [increase in customer satisfaction](http://cardealermagazine.co.uk/publish/skoda-rolls-digital-assistant-app-uk-retailers-pilot-shows-increase-customer-satisfaction/175387) across the UK. Traditional [banks must](https://www.financedigest.com/lost-in-translation-why-banks-must-learn-the-language-of-their-customers.html "Lost in Translation: Why Banks Must Learn the Language of their Customers") also evolve from the age-old marketing brochures and leaflets. Traditional players are losing some ground to disruptors but largely are unthreatened. Research last year reported that despite having over a [million customers](https://www.financedigest.com/crypto-broker-genesis-owes-geminis-customers-900-million-ft.html "Crypto broker Genesis owes Gemini’s customers 0 million – FT") in the UK, only 1 in 5 have their salaries paid into their Monzo account. Consumers are [joining neo-banks in their millions because they’re offering something which appeals to their modern needs](https://www.financedigest.com/hospitality-needs-to-join-the-contactless-revolution.html "Hospitality needs to join the contactless revolution "). The alluring flexibility and responsiveness associated with [digital](https://www.financedigest.com/the-digital-finance-revolution-empowered-consumers-turn-digital-to-protect-financial-security.html "The digital finance revolution: empowered consumers turn digital to protect financial security") tech has encouraged these new financial players to design products people (particularly millennials) want to use, even enjoy using. The winners will be those banks who serve [customers seamlessly](https://www.financedigest.com/how-to-navigate-a-seamless-journey-from-cio-to-chief-customer-officer.html "How to navigate a seamless journey from CIO to Chief Customer Officer") offering choice, convenience and a caring human touch. Keep the branch but [change it – cater to the needs of those who want face-to-face advice](https://www.financedigest.com/the-changing-face-of-financial-advice.html "The changing face of financial advice "), which research shows is largely young people who may be digitally savvy but not financially savvy, and use technology to help keep the experience personalised. Look outside of category at apps consumers are regularly using: Uber, Netflix, Amazon, etc, and understand what it is about these [services that are speaking directly to their needs](https://www.financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industry.html "A mindset change is needed in the financial services industry"). It has never been more important to understand how and why [customers shop](https://www.financedigest.com/how-brands-can-adapt-marketing-tactics-to-better-suit-customers-changing-shopping-habits.html "How brands can adapt marketing tactics to better suit customers’ changing shopping habits") around – and it’s time the bank branch caught up with this. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---