The Bank Branch Digital Transformation Trifecta

The financial services industry ranks as one of the top markets to experience massive digital disruption in the coming years. So, how will the bank branch be impacted? We have an idea of where bank branch digital transformation is headed…

In 2016, Ernst & Young introduced its Banking Relevance Index (BRI), designed to measure the importance of traditional banks to customers’ lives. After surveying financial service institutions across 32 markets worldwide, the firm reported an average global bank relevance score of 75%. Not bad, but what’s contributing to the missing 25%?

That can be a lot for an industry that faced little to no competition in the not-too-distant past. The emergence of digital-only banks and alternative payment methods, combined with rapidly evolving customer needs and preferences, has undoubtedly turned the market on its head. But this hasn’t stopped demand for traditional banking. Consider that only 14% of customers worldwide feel “extremely confident” in the banking industry, yet bank reliance remains strong. So strong, that the number of accounts at global financial institutions grew by 700 million between 2011 and 2014.

This tells us that banks aren’t irrelevant—they just need to go further to meet customers’ next-gen needs. If you ask us, the best way to improve this BRI deficit is to focus on branch transformation.

Viva la Branch

Bank branch digital transformation is at the heart of today’s financial services industry. Worldwide, 44% of customers say they would not trust a bank without branches, with that number being much higher in some markets (e.g., Mexico with 63% and Malaysia with 54%). Meanwhile, 60% indicate that they want to visit a branch or call a person to purchase a new product or get advice. The retail bank branch is still very much needed. In fact, 22% of Australians prefer to visit branches with a third of over-55s selecting that option. The question is: how can it be made more open, integrated, agile and future-proof?

Enter the trifecta of bank branch digital transformation:

  • High-touch
  • Multi-channel
  • Advice-centric

Deliver a High-Touch Experience

There’s no denying that customers want banking experiences to be fast and efficient, yet they also desire personalization and relevancy. This is exactly why we’re seeing brands like Suncorp evolving from traditional retail branches to “concept stores” that are designed to offer intimate, one-on-one experiences. Organizations across the globe are also now emphasizing zones or centers that target specific financial activities (i.e., applying for loans, refinancing, wealth management) to drive meaningful conversations that guide customers through oftentimes complex processes.

And for not-so-complex processes, they’re advancing with highly-secure self-service solutions (like video kiosks). Consider Bank of America, which is currently testing “completely automated” branches that feature automated teller machines and video-conferencing technology for customers to engage with off-site bankers.

In many ways, a high-touch approach can be the catalyst needed to drive innovation, competitiveness, revenue, and customer advocacy.

Make the Branch the Core of Your Omnichannel Experience

Multichannel is vital for interacting within a range of industries, especially banking. In fact, over 60% of global banking customers say it’s important to them. But what exactly constitutes “multichannel?” This can’t be several channels operating in silos. Rather, it must be a 360-degree, fully-integrated environment that supports end-to-end customer journeys and breaks barriers imposed by outdated bank structures.

As Ernst & Young reports: banks “need to think beyond a ‘multi-channel’ approach, in which channels are often organized in silos with individual reporting lines and performance targets, creating instead an ‘omni-channel’ organization, with the customer at the heart of channel strategy and design.”

Taking this one step further, institutions should be placing the branch at the heart of this omnichannel journey. This means, for example, the ability to route customers to branch specialists regardless of where they are within the organization, and enabling them with ubiquitous data access and unified reporting.

Evolve from a Service Center to an Advisory Center

An important part of bank branch digital transformation involves an advisory approach. Employees once known as tellers are now emerging as bank ambassadors, designed to guide customers rather than upsell. Consider JP Morgan Chase: the bank’s traditional balance of 60% transactional staff and 40% advice staff at legacy locations has reversed at newer centers, where 60% of staff now provide financial advice.

Despite the rise of the autonomous, digital banker, research shows that better advice and education can help improve most customer experiences:

  • Over one-third of global customers are digitally savvy but do not have a firm grasp of financial products nor the financial choices they make
  • Almost half are not yet comfortable with digital channels
  • Only 26% believe their primary financial institution provides unbiased advice

Improvements must be made, and this begins with providers rethinking their customer approach. This may include focusing on data and analytics to identify areas that affect customers’ understanding. Or, it could mean a shift from teller lines and formal conversations to casual yet personalized experiences. It should always mean doing the right thing for the customer by providing unbiased, high-quality advice.

How else can you transform the branch? Read my blog “Bank Branch Innovation Like Never Before: 5 Brands Redefining Tradition” to see how leading financial institutions are strategizing to get ahead.

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Kari’s Law: An Emotional Journey Leads to a Bittersweet Ending

Our long journey leading up to the presidential signing of Kari’s Law began well before the precious life of Kari Hunt tragically ended on Dec. 1, 2013. (Learn about Kari’s story.)

For me, it actually began in the spring of 2013 when I noticed a sign on my hotel door, which read: “In case of an emergency, dial 0 for the operator.” I remember thinking, “The operator isn’t trained to handle an emergency. I should be able to dial 9-1-1 from my room phone.”

Sadly, this occurrence wasn’t an anomaly. I found it to be a common bad practice adopted by too many hotels across the United States.

There’s no doubt their intentions were good. Hotels were looking to be proactive, and they wanted to expedite not delay emergency response times. To make matters worse, direct access to 9-1-1 from Multi Line Telephone System (MLTS) was flawed because guests couldn’t dial 9-1-1 directly. They needed to dial an extra 9 just to get an outside line. That proved to be a fatal flaw in Kari’s case because her 9-year-old daughter couldn’t get through to 9-1-1. MLTS legislation also didn’t exist or, if it did, it was limited to a handful of states, and much of that dealt with the reporting location. It didn’t address the issue of access and notification.

Throughout the year, I used social media to increase awareness and drive meaningful change. I spoke at conferences and even began a podcast series dedicated to this very topic.

Then one day in December 2013, everything changed. My Google Alerts for 9-1-1 came up with a Change.org petition that was raised by Hank Hunt after his daughter Kari was brutally murdered in her hotel room.

I reached out to Hank on Facebook and offered to help him in his cause. Having an innovative tech leader like Avaya backing me increased Hank’s confidence in my ability to help him bring about the changes he sought.

My previous experience immediately proved useful, and we were able to go straight to the top at the FCC. (I had served on the Emergency Access Advisory Committee under Chairman Julius Genechowski, who had just turned the agency over to Chairman Tom Wheeler. Talk about timing!)

Following a number of tweets and letters, including an Open Letter to the FCC Chairman Wheeler, we received a call from Commissioner Ajit Pai’s office and a meeting was scheduled for Jan. 10, 2014. That meeting turned into a 45-minute discussion on the issues, the fix, and the challenges we faced.

Over the next several months, Hank and I garnered the interest of legislators in cities and states across the country: Suffolk County in Long Island, the state of Illinois, Maryland, et al.

In Texas, Avaya participated in hearings, and offered our unique expertise. We introduced the idea of a “Waiver Clause,” which stated that a business could obtain an exemption if they showed financial hardship. With the exemption was the requirement to register the make and model number of the system. This uncovered many systems that were actually capable of being compliant, and eased the adoption of the new law.

More states followed embraced the legislation—it was a full-on domino effect—except at the federal level where every attempt to bring a bill to life stalled. But then in 2018, that changed too.

After an all-night session ending on Feb. 9 on what would have been Kari’s 36th birthday, the House of Representatives passed the Senate amendment of H.R. 582, and it was officially on the way to the president of the U.S. for signature.

We quietly celebrated, knowing Kari’s murder would not be in vain.

The cherry on the cake was being invited by Hank, Kari’s father, to witness the president sign the bill into law on Feb. 16, 2018. I was both humbled and honored, and invited my former colleague Avaya Sales Engineer Dan Wilson to enjoy the moment with us. Dan had worked tirelessly on this legislation, clocking 12 miles of walking in the Maryland House and Senate.

The West Wing is everything you’d imagine: intimidating, wonderful and a once-in-a-lifetime experience. It was a pleasure to not only stand beside Hank and witness the signing, but to also be in the company of people who supported our endeavor since day one: Ajit Pai, my good friend and now Chairman of the FCC, Congressman Louie Gohmert who introduced the bill, as well as other Congressional reps with interest in public safety. After reading a prepared statement, President Trump uncapped the ceremonial pen and placed it on the paper. As it started to move, we were overcome with emotion. To think, 50 years to the day, and quite nearly the minute, following the first ever 9-1-1 call, Kari’s Law had become the “Law of the Land.”

Transforming Online Meetings for Team Collaboration

I find it interesting how companies choose to measure team collaboration. Most use surveys, some productivity data, and others standard review processes. Yet team collaboration is about so much more than all of this. If you ask us, it’s about putting people first.

We mean this quite literally. It’s important to provide employees with a suite of face-to-face collaboration capabilities that enable dynamic, real-time team collaboration. Communication staples like voice and chat are surely important, along with the endless other tools teams use to connect and share information. Meeting via video, however, is arguably the best way to collaborate, build relationships, create momentum and build morale. Face-to-face collaboration may not always be needed, but companies will want to make sure they have the best tools in place for when it is.

When done right, online meetings enhance team collaboration in several ways. Consider the most basic of them all: a good part of communication is non-verbal. Being able to observe team members’ body language can help prevent miscommunication and connect across languages and cultures. The technology has also evolved to the point where teams can flexibly share data, documents and other project details via screen sharing or virtual whiteboards. All the while, there’s the opportunity to initiate private chat sessions between team members to discuss simultaneously.

The bottom line: online meetings enable authentic human interaction that delivers real value, time and cost savings, and better business outcomes.

Now, imagine being able to quickly implement an easy-to-use, cost-effective service that skips the capital investment and technical hassle of a traditional video solution. This is exactly what Avaya Equinox Meetings Online offers: a cloud-delivered application that allows users—both employees and outside contacts—to connect with their browsers (no plug-ins required) or mobile apps to effortlessly initiate and/or participate in online meetings. The service places priority back on people, which is where it belongs. Simple as that.

Don’t believe us? Read Nemertes Q4 2017 Enterprise Business Value Matrix for Unified Communications and Collaboration to see what they had to say. If you like what you see, or if you have any questions, please feel free to reach out to our team for more information via our webchat.

The Easy Button for IoT

I am sure that I don’t have to tell you how the Internet of Things (IoT) is revolutionizing our world. Stop by any electronics retailer and you will find smart TVs, smart lights, smart refrigerators, and smart thermostats. Open up the brochure for a new car and you will find more space dedicated to intelligent sensors than horsepower. Tour a modern manufacturing plant and you will quickly discover that nearly every machine used in production has been equipped with an IP address. From the consumer to the enterprise, IoT is the driving force of innovation.

Of course, there is a dark side to this revolutionary technology: It’s not all that easy. As a consumer, it’s not a big deal to have one smart dryer that sends a text message when your clothes are dry. It’s also pretty simple to have your refrigerator email you a photo of its contents. In these cases, it’s just you and your machine.

However, what if you had a thousand dryers and ten thousand refrigerators. Let’s take it further. What if you were American Airlines and your fleet of airplanes had five hundred thousand different sensors reporting information every second. Now, imagine that some devices reported data using Bluetooth while others used Zigbee, WiMAX, LTE, WiFi, and NFC. Want to make it even more challenging? These different sensors report data reading using SOAP, REST, WebSockets, and a myriad of proprietary protocols. It quickly becomes an engineering nightmare to collect, store, and take the appropriate actions on this constant stream of data.

One Bite at a Time

Question. How do you eat an elephant? Answer. One bite at a time.

As with an elephant, the best way to conquer the IoT problem is to break it down into bite-sized pieces. Instead of trying to directly deal with all those different sensors and their unique forms of communication, have those sensors talk to gateways that understand multiple IoT dialects. Those gateways could then normalize the data before sending it off to a central cloud repository. Next, wrap the IoT cloud with web services that allow for a consistent and uniform way to access IoT data. Finally, use those web services to create a suite of applications for data visualization, event processing, analytics, etc.

Now, instead of being inundated with terabytes of data that may or may not be important, you only see what you need to see and only when you need to see it. You also have a scalable platform that allows you to add new sensors without having to constantly redesign and redeploy your business applications.

At Arrow Systems Integration (ASI), an Avaya A.I.Connect partner, we call this distributed architecture of sensors, gateways, and cloud services Arrow Connect™.

Arrow Connect

Arrow Connect is a software architecture that connects any device over any protocol to any cloud. Designed and developed by Arrow with security, scale, flexibility, device management, multi-tenancy, hierarchy, open APIs, and extensibility as its core principles, Arrow Connect is helping customers across multiple industries bring their products to market faster.

The Arrow Connect software development kit (SDK) helps enterprises leverage the full capabilities of any device while an extensible software gateway allows developers to add support for protocols and sensors not currently supported by Arrow Connect.

The Arrow Connect cloud platform enables secure provisioning and management of all its devices. It runs on multiple public cloud platforms and seamlessly integrates with Microsoft Azure, IBM Watson Bluemix/Softlayer, Amazon Web Services, and private data center solutions.

Breeze and Zang Workflows

While support for RESTful web services is essential to being an open and secure cloud solution, this comes with a price and that price is complexity. Despite being an open standard understood by most software developers, the fact that you must be a developer to use web services confines them to a very select group of people.

In our quest to find every possible way to simplify IoT, ASI has partnered with Avaya to add support for Arrow Connect IoT devices, sensors, and gateways into Avaya Breeze and the Zang Workflow Designer. With both of these platforms, access to IoT data and Arrow Connect services becomes as simple as drag and drop and non-developers can create powerful IoT solutions in a matter of minutes. Better still, this simplification does not come at the cost of accuracy, reliability, speed, security, or scalability. The visual tasks embedded in these workflow tools employ the same Arrow Connect web services a skilled software developer would use. The difference is that there is no need to learn Java, .Net, Python, or any other programming language.

 

The Easy Button for IoT

With integrated workflow technology, you can quickly turn an idea on a whiteboard into a fully functional and easily deployable solution.

Next Steps

McKinsey recently said that “Any business that fails to invest heavily in the IoT in the next 10 years is unlikely to be able to remain competitive.” While these may seem like strong words, industry after industry has taken them to heart and the IoT revolution is everywhere. As I stated at the beginning of this article, IoT is becoming pervasive for both consumers and businesses.

The simplification, scalability, and security of IoT offered by Avaya and Arrow Systems Integration helps an enterprise to create the solutions it needs to enhance its business, grow its customer base, and stay competitive.

Andrew Prokop is the Director of Emerging Technologies at Arrow Systems Integration. Andrew is an active blogger and his widely-read blog, SIP Adventures, discusses every imaginable topic in the world of unified communications. Follow Andrew on Twitter at @ajprokop, and read his blog, SIP Adventures.