Banks go back to basics to fulfill customer experience
A bank branch traditionally has been a place with tellers. Nowadays, it is often a place with listeners.
A number of banks in Western Pennsylvania are placing staff in branches to hear about and service customers' investment, retirement and other needs, instead of just processing checks and taking deposits.
“Our philosophy is total money management,” said Vincent Delie Jr., CEO of First National Bank and president of its parent, FNB Corp. of Hermitage, Mercer County
“Our goal when a customer walks into a branch is to provide what they need to be (financially) successful,” said Delie. “That requires people in the branches to have more training and to be more focused on cross-selling.”
In an age when customers are using technology to do more of their day-to-day transactions, banks are employing new ways to serve them with other services inside traditional branches.
Retail bank branches are evolving more toward places for customers to “resolve issues or look for financial advice,” said David Albertazzi, senior analyst at Aite Group, a financial services research and advisory firm based in Boston.
“Branches are becoming more about customer experience rather than about transactions,” he said.
For example, a First National Bank branch employee might suggest to someone nearing retirement that they roll over a 401(k) account, said Delie. Or a newcomer to Pittsburgh who's opening a checking account might be offered a credit card or homeowners insurance.
A few First National Bank branches, such as in Shadyside and Sewickley, feature airy, enclosed areas for customers to discuss their personal finances with staff members in a private setting, said Delie.
At Citizens Bank, customers walking into a branch are likely to be intercepted by a “greeter” who asks why they are visiting and what other financial issues their households have. If the customer is waiting in line just to deposit a personal check, for instance, he might be directed to a “smart” automated teller machine on site that can handle the transaction and which has no waiting line.
“We started testing greeters about a year ago in the Pittsburgh market. Now, we have it around the country,” said Michael Cleary, group executive vice president and head of U.S. distribution for consumer banking at RBS Citizens Financial Group, parent of Citizens Bank.
The bank has begun adding “financial consultants” — generally one for every two or three branches — to advise customers about such issues as saving for college or planning for retirement, he said.
“Years ago, when online banking came along, people used to say branches would go away once consumers adopted this channel,” said Cleary. “But what we've learned is that people use all channels — ATMs, online banking, telephone banking, mobile banking — and branches,” said Cleary.
A study by the Tower Group shows the cost difference to process transactions through different channels. A transaction at a teller window is the most expensive, costing banks $4 on average to process. A telephone transaction — where a call center agent talks to a customer — costs an average of $3.75. ATM transactions cost 85 cents, and online service costs only 17 cents per transaction, the study shows
PNC Bank is converting a traditional branch in the South Hills into what it calls an “investment and retirement planning center.” The office on Beverly Road in Mt. Lebanon will be the first of its kind in PNC's retail network when it opens sometime in late March, said Jim Balouris, executive vice president of retail banking.
“We'll be redoing the entire branch,“ said Balouris. “The objective is to have good conversations with customers sitting side by side with our experts to come up with game plans to achieve their financial goals.”
The PNC prototype will differ from a PNC wealth management office, which serves people with at least $1 million to invest. Rather, an investment and retirement planning center will cater to what Balouris calls, “the mass affluent,” or people with between $100,000 and $1 million to invest.
“Customers are searching for solutions in this low-interest investing environment,” he said.
PNC is taking a “test-and-learn” approach before rolling out the concept, said Balouris.
Area banks also continue broadening their branch capabilities with technology. Executives at both PNC and at Citizens said their respective banks by the end of 2013 would have in place advanced-function, or smart, ATMs. The machines can accept cash and check deposits without envelopes, and provide check images on receipts.
“Whatever people's economic level is, they are using technology to do more of their day-to-day transactions,” said Balouris.
Thomas Olson is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or at firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Kings Family Restaurants sold to California firm
- Mylan raises bid for fellow drugmaker; Perrigo says ‘no’
- Airlines’ bottom lines soar on cheaper fuel
- GetGo to hire 300 workers
- Comcast abandons Time Warner Cable merger deal amid regulators’ pushback
- Acura ILX strikes balance
- Lexus sport coupe has youthful appeal, power
- What price safety? Cost of crash prevention is roadblock
- DeVry shift to online classes prompts closing of Pittsburgh campus
- Tech sector drives gains on Wall Street
- Guessing approach can result in big bill