Take a trip to the bank of the future

As you are walking into a bank branch office, a member of staff you've never seen before rushes over to greet you by name.

He or she leads you to the counter where you fill out a slip using a digital pen--the information appears on a screen in front of you and you confirm that it is correct.

Standing in line to cash your checks, you pick up a leaflet on personal loans and start reading. As you pass, a plasma screen on the wall starts showing a video on personal loans, providing more details. You put the leaflet in your pocket.

When you get to the clerk you cash your check, using your fingerprint to prove your identity. He mentions that as a valued customer you can get a special rate on personal loans--if you want to sign up now...

Welcome to the bank of the future.

For all the talk of the Internet killing off the branch network, around half of a bank's customers will visit a branch at least once a month. That's three times the number that will visit the Web site. So banks are taking another look at how to boost sales through their branch network.

The trick is to use cutting-edge technologies to capture new types of data that can be used to improve a bank's ability to sell to customers, according to Michael Redding, director of research at Accenture's technology labs.

Radio frequency identification technology, digital pens and motion-tracking cameras could all be added to the arsenal to help banks find out when their most important customers are visiting and how to sell them more financial products.

Bank cards could be fitted with RFID chips that would allow banks to react faster when important customers visit the branch--for example, by sending someone to meet and greet them as in the scenario above.

Alternatively, screens in the bank could display a message advertising products that customers might like to buy, based on their profile. If the bank knows Mr. Smith has two teenage kids, then when he comes into the branch the screens could advertise student loans.

Accenture's Redding said one bank in Latin America wants to roll out RFID-chipped cards to its VIP clients. "They are trying to make it a status symbol," he said. "By making it an object of desire they can get people to elect to take part."

RFID chips could also be embedded in leaflets, and these chips could trigger videos on in-house screens to provide further information. The information could be combined with the information from the RFID chip on the customer's card and sent to the counter staff, who could then use this to cross-sell.

Digital cameras could also be used to track how individuals move around the bank, helping banks see which layouts work best.

This vision of the branch of the future isn't just sci-fi whimsy, Redding said. All of these technologies are "being used somewhere by a bank. All these things are happening in a piecemeal fashion."

Different technologies are being tested by banks to see which fit best, he said. "You don't have to do things on a massive scale until you have validated the economics."

While some people might be concerned about carrying around so many RFID chips, Redding is confident they will be accepted. "It's not a question of will people do it," he said. "It's a case of how many ones will they carry."

Many customers will see such technologies as bringing advantages--trading off some of their privacy in return for shorter lines or better services, he said. "It's about letting the customer choose. Forcing the customer is not a good story because people won't accept it."

Steve Ranger of Silicon.com reported from London.

[inthenews]

How about a bank with speedier lines?

Everytime I go to the bank I always have to wait in a long line before I get to deposit a check. When I go after work it seems to take forever just to get something simple done quickly. I'm usually waiting for 30 or 40 minutes before I can get to a teller. They need to speed up or shorten the lines during rush hour to make it more desirable place for me to go to put my money before they do any of this hightech stuff.

[regulator1956]

You wait 30 minutes?

Don't meaqn to be insulting, by why would anyone wait?

Try using an ATM.

[mindhead01]

Who needs a branch?

I have been banking online for over 5 years and have never had a need to go into a bank for basic transactions. When I need to make a deposit I go to an ATM.

Online banking is the future. Going into a branch of a major bank and expecting good service is a pipe dream. As the article states you have to be a VIP. How many VIP's go into banks to conduct business. Their personal bankers come to them.

[TV James]

Exactly.

I agree completely. The basic premise of this article, that there is a physical location, one you can go inside, no less, is flawed.

I created my account online eight years ago and have actually been inside a branch probably less than once a year since then.

The bank of the future is the evolution of the ATM network and bank website.

The ATM will become even smarter - I like how Wells Fargo allows me to pre-program how much cash I get with the "Quick Cash" button and whether or not I want a receipt.

The online bank website will get smarter - It will be able to better recognize what additional services I would benefit from, it will be able to do even more bill-presenting, and sadly, it will probably eventually show me coupons for places I shop often.

But, most importantly, the bank of the future needs to realize that if it wants more of my business, it needs to be competitive. Why should I move my brokerage account if my current provider charges $10 a trade and my bank's offering charges $25 a trade?

But, sadly, I expect the bank of the future to be busy thinking of new ways to charge me for stuff that used to be free, or new fees it can ding me with.

[Stating]

High School Tellers, Muslim Greeters

Bank Of America here in California is already way ahead of the curve. Their grand strategy, post Nations Bank-Fleet mergers has been to:

1) Close as many neighborhood branches as possible
2) Convert full branches to ATM only
3) Cut branch hours (Friday close at 6PM)
4) Get rid of full-time, well-trained, mature staff in favor of spikey-haired high schoolers who turnover faster than McDonald's order takers
5) Provide hijab clad Muslim greeters at the door

Wonderful customer-centric strategies BOFA. Keep up the good work.

[neocliff]

Another Database

Great, another database of information about me. Another bit of
my privacy gone. I don't think people in the late 30's/early 40's and
up are going to go for this but I bet those that are teens and
younger today won't think a thing of it.

[regulator1956]

The Future ?!?!??!?!

"When you get to the clerk you cash your check, using your fingerprint to prove your identity."

Cashing a check is the future ?? The author doesn't have a clue.