The Power of Omnichannel Banking: Why it starts and ends at the Branch

In today’s fast-paced, digital-first world, customers expect banking to be as seamless and intuitive as their favorite apps. Omnichannel banking—a strategy that integrates all customer touchpoints into a cohesive experience—has transformed the financial industry, but this has been seen mainly in the digital world. Omnichannel banking is crucial because it directly impacts customer experience, efficiency, and competitiveness.

So in this digital first world - why should it start in a bricks and mortar branch. Let’s explore why the branch is where omnichannel banking should begin and end and how that strategy redefines the customer experience. How do we go from bricks and mortar, and digital strategies to a combined bricks and clicks “omnichannel” strategy.

What Is Omnichannel Banking?

Omnichannel banking unifies all channels—mobile apps, online platforms, ATMs, call centers, and physical branches—into a single, consistent customer journey. Unlike multichannel banking, which treats each channel separately, omnichannel ensures customers can switch platforms without losing context. For example, a customer might start a loan application on their phone, visit a branch to submit documents, and receive updates via SMS, all with the bank maintaining full visibility of their progress.

According to a 2024 McKinsey report, banks with robust omnichannel strategies see up to 20% higher customer satisfaction and 15% increased revenue from cross-selling. But why should this modern approach start with something as traditional as the branch?

The Misconception: Are Branches Obsolete?

For decades, industry experts predicted the demise of physical branches, assuming digital channels would make the branch obsolete. And while digital channels do dominate, branches haven’t disappeared—they’ve evolved, and the role of the branch has changed.

Research shows customers still visit branches for complex transactions, financial advice, and relationship-building. In an omnichannel world, the branch isn’t a legacy artifact; it’s the critical node in delivering seamless customer experiences at the point of contact with the customer.

Why Omnichannel Starts at the Branch?

The branch plays the pivotal role in establishing and maintaining trust and relationships with the customers. Improving customer satisfaction allows banks to increase customer retention and relationships as well as increasing products per household and improving cost income ratios.

The branch remains at the heart of an omnichannel strategy not because of transaction volume, but because of its strategic role in building trust, delivering advice, and strengthening relationships that digital channels alone can’t replicate.

In short: Digital delivers convenience; the branch delivers confidence. Together, they define a truly omnichannel experience, and incorporating an omnichannel strategy that places the branch at the centre of that strategy is important for a number of reasons.

1. The Anchor of Trust

Branches are synonymous with credibility. When customers see real-time branch activity—like appointments, cash deposits, or loan consultations—reflected across digital channels, it reinforces authenticity. Trust is the cornerstone of banking, and branches remain the most tangible place to build it.

2. Where Journeys Begin (and Restart)

Many customer journeys, such as opening a business account or securing a mortgage, start in-branch. Customers visit to validate documents, sign paperwork, or seek advice. When digital processes fail, branches are the go-to place for resolution, making them a key convergence point in the omnichannel ecosystem.

3. Staff as Part of the Channel Mix

Tellers and relationship managers are integral to omnichannel delivery. Equipping them with the same data, tools, and workflows as digital systems is essential. Staff must be able to continue a loan application started online or resolve a mobile login issue, ensuring a seamless handoff between channels.

4. The Core of Legacy Systems

Many banks’ core systems were designed around branch workflows. To create a truly omnichannel architecture, branch software must serve as the foundation for integration. Attempting to layer new digital experiences on outdated, siloed branch systems leads to fragmentation and poor customer experiences.

Omnichannel Banking in Action

What does an omnichannel experience look like in practice? Here is an example:

A customer needs to withdraw a large sum of cash (e.g., $20,000) for a property transaction. Because of the amount, the withdrawal requires pre-authorization and security verification:

Initiation in the Branch: The teller verifies that the withdrawal exceeds the daily cash limit and must be pre-approved. Teller starts the process on the branch system, which automatically logs the request in the centralized omnichannel transaction system.
Real-Time Notification: the customer immediately receives a notification on his mobile app: “A large cash withdrawal request has been initiated at your branch. Please confirm to proceed.”
Customer Authentication via Mobile App: the customer uses his mobile banking app and authenticates using biometrics (Face ID/fingerprint). He confirms the withdrawal request and selects a pickup time.
Back-Office & Security Validation: The bank’s back-office team receives the confirmation through the central workflow system. Security checks (account balance, KYC, transaction history, fraud monitoring) are automatically run. Once approved, the teller is notified that funds can be prepared for pickup.
Cross-Channel Status Tracking: the customer can track the withdrawal status in his mobile app under “Pending Branch Transactions.” If he calls the contact center, the agent can see the same transaction status in their omnichannel CRM view — ensuring continuity regardless of channel.
Completion in the Branch: At the scheduled time, the customer returns to the branch. Teller verifies his ID and confirms the digital approval record.

Other similar examples:

A customer begins a mortgage application online, completes documentation in-branch, and tracks progress via SMS and the mobile app.
A customer books an in-branch appointment through the mobile app, receives personalized product offers while waiting, and finalizes the transaction digitally.

Final Thought

Omnichannel success doesn’t mean replacing the branch—it means reimagining it. By leveraging the trust, infrastructure, and human interaction branches provide, banks can create unified, customer-centric experiences that meet modern expectations.