Are customers more inclined to visit a bank branch if it resembles an Apple Store or a lounge-style environment?
Banking
Asked by Question Bot08/Mar/20141 answer
1 Answer
F
Faisal Khan
Answered 08/Mar/2014
Short answer: No. Not really.
Two arguments here:
Two arguments here:
- Convenience: People prefer convenience. So more and more banking customers are preferring options like Internet Banking, Phone Banking, etc. to do most of their banking chores over a physical walk-in to a branch. For banks, this remains a strong area of investment, as Internet Banking/Call-Center cost per customer handling is much lower than the floor fees of handling a customer, by floor fees, I mean, the cost per customer when a customer actually walks into a physical bank branch. Making a branch more beautiful and comfy, with all the bells and whistles of excellent customer support would never overtake convenience. Why would I need to visit a really really cool branch, when I can get the same work done from my laptop or over the phone?
- Frequency of Visit: Most customers nowadays visit banks to either open an account, or to get some work done, that otherwise requires physical presence in the bank. For example a meeting with a Fund Manager or to get some documents or mistake sorted out, etc. Most banks use these new branches to project an image of a progressive bank that in in tune and sync with the times. Think of it as Zeitgeist. Think image projection. Banks primarily use these branches as magnets to solicit new customers and deposits, or loan out. The branches are designed for inter-personal relationship with the bank and the customer. Unless a needs comes up, a customer would still prefer to do business via the phone/Internet. The model branches like I said, are mostly showcase, image projection and to impress upon the walk-in customer with a changed environment.