The following is a brief summary of the keynote Danny Tang presented at Mini Conf' 18 in Salt Lake City, March past.
This is part 2 of the top-down model.
Find part 1 here
This previous section of his talk dealt with the first level of the top-down model for Branch Transformation called the distribution model. He moved onto the second part of the top-down model here called the new service delivery model.
The service delivery model is all about consumer behaviour. You must know a lot about your customer. Keeping on top of consumer trends is key here as they are constantly changing. In order to maintain control and make informed decisions on how to deliver one's services, a tight grasp on the events going on in the marketplace is necessary.
Changing consumer behaviour
Danny Tang stressed the fact that consumer behaviour has changed dramatically over the past 10 years. The two major changes he pointed out were:
Declining branch traffic (5% Globally) and channel migration. They work hand in hand and this is why; people have moved away from using bank tellers to predominantly making use of ATM's, Mobile and PC for their banking needs. As a result, their need to enter bank branches lessens.
What about those that visit the branches?
In his keynote, Danny tang revealed that 20% of regular branch visitors are responsible for 60% of the bank's transactions. So, as it may appear that banks are losing out every day due to empty branches (Because of channel migration), they still have a strong support base within those regular visitors. He goes on to say that banks must find out who those 20% are, and then find out what their motivation is. This will allow them to keep building on the strengths that keep those customers coming.
If you wish to have successful branches, consumer behaviour is not something you can overlook.
THE ELEPHANT IN THE BRANCH!
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