The Changing Landscape of Banking - Post COVID19
The Changing Landscape of Banking. What will be the “New Normal” Post Pandemic?
As we begin to see the light at the end of the tunnel and governments around the world begin to plan on how to best re-open the economy, what will banking look like? How will the new normal impact customers? Bankers? Branches? Leaders and Managers?
During the pandemic, banks and credit unions were viewed as essential businesses and remained open, but it was hardly business as usual:
Customer adoption of digital banking skyrocketed
Call Centers became overloaded with calls
Branches reduced hours and some branches were closed temporarily
Flex staff schedules were implemented
Leaders were managing remotely- sometimes from their dining room table!
Will the changes be temporary or permanent?
Branches will be different
The shift to more digital banking should mostly stick. Customers had no choice but to do much of their transactional banking remotely. Those customers that had been fearful or distrusting of technology have now experienced its convenience and most likely will continue to conduct much of their banking remotely. This means that foot traffic in the branches will significantly decrease and branches will lose a competitive advantage for revenue growth and it will be more difficult for branches to be profitable.
There will likely be a reduction of branches going forward, but the branches and the bankers in those branches will need to proactively drive revenue as the banks will still need to drive revenue growth.
Banks will need to repurpose the branch and how bankers interact with their customers in a manner that has been talked about for years, but it hasn’t really happened. The bankers will need to become less transactional and more consultative in uncovering customer needs, educating the customer on options and providing solutions to meet the customer’s needs. With the decreased foot traffic in the branches, bankers will need to proactively reach out to customers.
Given this has been talked about for years in the banking industry and still has not become a reality, banks cannot just expect their bankers to simply “flip the switch” and begin implementing the necessary behaviors to have a proactive, consultation conversation with a customer and provide the suitable solutions. The bankers will need to be led, managed and coached much more effectively than they are currently in order to improve and embed the skills needed.
Coaching in a Crisis
In times of crisis, customers’ priorities change. Banks play a significant role in easing financial distress. The coaching staff has never been more important as managers build trust across their teams - as trust grows people become more motivated, connected, and engaged. This will help staff stay focused whilst going about assisting customers with high levels of empathy and compassion.
We are already seeing banks using coaching during this time to align values, giving staff a clear sense of purpose, and building confidence to proactivity serve distressed customers. Addressing customer needs and concerns while improving staff’s capabilities will be a steady strength in very uncertain times.
Leaders will need to manage differently
Prior to the pandemic, managers above the branch level at most banks and credit unions were either in meetings or constantly on the road conducting branch visits and coaching.
During the pandemic, many of these managers found themselves managing remotely, relying on the telephone, videoconferencing and any data they had in front of them to manage their branches, regions or areas.
Many banks realized that that the majority of the data regarding the coaching in the branches was paper based at best or in some cases, non-existent. Leaders were managing and coaching based on performance metrics that had already occurred combined with anecdotal information, hardly ideal before the pandemic and certainly insufficient in order to ensure bankers are fully meeting customer needs going forward.
With increased remote workforces on the horizon coming out of the pandemic, it will be absolutely critical for leaders and managers at all levels to have complete visibility of the coaching actions, including the frequency, quality and the direct link to performance outcomes in order to effectively help drive much needed revenues.
SeeEverything’s Capability and Conversation Applications can provide you with the structure and information that bankers and managers will need to be successful in the next era of banking.
For more information how SeeEverything can help, please contact us at info@seeverything.com