In such a digitized society, physical bank branches are likely to disappear in the future. However, they still have the necessary functions and are beginning to reinvent themselves.
The decline of physical bank branches:
The physical offices of the banks that we all know today will end up disappearing as they have started providing loans online. However, that does not mean that bank branches will cease to exist, but rather that they will reinvent themselves in an era in which the internet is the center of all operations.
A new concept of bank office is being formed that will end the branches that we currently know since the maintenance of these facilities represents a cost for the banks.
Today, the trend is that the number of branches will continue to decline, but, likely, they will not close completely, but rather a new concept of office will appear.
Many prefer to carry out banking transactions through digital means. So, branches will have to transform and focus on purely commercial and related activities if they want to continue to exist.
Services to the customers in this new normal:
One thing is for sure that everyone is learning as they go. In pandemic times, digital tools will be continued to be the standard. Today, banks have to unshackle themselves from bequest behaviors and mindsets to develop more responsive and ensure, they serve their customers’ needs – today and tomorrow.
The need for a personal advisor:
When the physical facilities of the bank branches disappear, the people we used to ask for information about our bank account, about what was convenient for us when carrying out an operation or some movement with our money, etc. will also disappear.
This figure of the personal advisor who helps and advises us is essential. And, it is one of the strengths of the branches. These people offer trust and reliability to customers, which can help to achieve more loyalty in one bank or another.
Even so, there are people who are more independent and prefer offices that offer self-service. They do not need a person who is continually aware of the actions he takes. Thus, queues can be avoided and operations are streamlined.
What is Fintech and how does it affect banks?
Fintech is a word that is born from the fusion of the words finance and technology. It means financial technology and consists of a group of organizations that offer their customers innovative financial services and products, using ICT technologies.
They are start-ups that use financial technology as a means to lower costs and simplify processes. It is a very efficient service on the internet.
Most fintech companies do not have a physical presence in the form of branches and focus on providing a digital-only experience. They are crowdlending platforms, crowdfunding, loans from people to people without the intervention of banks, factoring, etc.
Fintech companies are becoming intermediary companies that cover a multitude of areas within the financial world. And are increasingly positioning themselves better in the market, being able to replace the banks themselves. This sector has multiplied in recent years and there are already many companies around the world.