An Initiative That Improves Efficiency, Revenue Generation, and Customer Experience
Before we get to the 3 things, let’s start with one thing: a clear definition. In today’s digital-first world, there are many ways to interact with a financial institution that don’t involve walking through the glass doors of a B&M branch, like online banking, digital self-service, and video banking options.
But a virtual branch goes beyond those channels. It is a very specific offering, and there’s clear evidence that your organization needs to start offering it.
What is a Virtual Branch?
A virtual branch provides banking services through unified digital and voice channels that were traditionally available only in a physical branch location. It can support new accounts, deposits, lending, cards, payments, online and mobile banking as well as fraud interactions. It is the only branch that is close to everyone, anytime, anywhere.
As Glia has now worked with a wide variety of clients who are now instituting their first-ever virtual branches, here are 3 things we’ve learned that will be helpful as your organization decides whether to move in this direction.
- REVENUE: Attracting new customers and members.
In a hyper-competitive market blossoming with new entrants and the battle for new (and particularly younger) new account holders, financial institutions need to “think beyond the bricks.” Offering new customers the option to fulfill virtually all of their banking needs via an online portal is a very attractive feature. In some cases, it may be necessary for you to add this service just to be in the conversation against your competitors.
- EFFICIENCY: Enabling growth without the typical cost.
In a non-branch-dependent world, you are no longer penned in by traditional geographic boundaries. Customers can open an account from anywhere, and take it with them as they move throughout their life’s journey. Think of it this way: At your next board meeting, if you were to propose the idea of building a host of new branches in 2025, you’d probably get laughed out of the room (or yelled out!). But through digital expansion and the evolution to a ChannelLess® platform, a digital branch can accomplish many of the same outcomes of massive expansion for nowhere near the cost.
- EXPERIENCE: Providing effortless customer experiences and long-term loyalty.
When you think about the new customers you are hoping to attract in 2025 and beyond, their first experiences with your organization will need to match or exceed their changes in expectations. There’s only one thing that most people want these days–everything–exactly as they want it, when they want it. That’s not too much to ask, is it? As we humans become more comfortable living in an on-screen world, asking us (forcing us) to go into a physical branch for anything feels like a high-effort experience. And now, with the advent of virtual branches, it’s finally unnecessary.
The Bottom Line: Selecting a Virtual Branch Vendor
The successful launch of a virtual branch requires expertise in a wide variety of disciplines.
The most obvious is technology (digital, phone, and AI). But the experience of others shows that it also requires support in:
- Staffing
- Change Management
- Integration
- Marketing
- Customer Communications
If you have not yet begun the discussion about initiating a virtual branch effort, now is the time. And, if you’re looking for additional guidance and to connect with others who have already gotten theirs off the ground, let’s talk.
As you are asking the question, “How do we want to be known as an organization in 2025?” it’s becoming increasingly clear that a virtual branch has got to be at least part of that answer.
