Technique Data Systems

Branch Transformation

The retail financial services industry is undergoing dramatic transformation due to various overarching meta trends that are acutely affecting the branch. The branch is both expensive to operate—with nearly 16,000 unprofitable branches in the United States today1—and rapidly changing—with only 5–13 percent of transactions being conducted in branches today versus 70 percent in 1985.2 As a result, financial institutions (FIs) must explore how the branch channel can be better integrated into a multichannel approach to acquiring, engaging and retaining customers in the coming years to avoid a sustained drain on FIs’ overall profits.

Trends Driving Change

Diebold has identified five key meta trends causing a shift in the financial services industry. Knowing what these trends are, and how they are likely to affect your FI, allows you to be better prepared to act with sound strategies.

  • EXPONENTIAL TECHNOLOGY CHANGE
  • RISE OF CONSUMER POWER
  • TRANSFORMATIONAL ECONOMY
  • CHANGING DEMOGRAPHICS
  • THE NEW NORMAL