Banks Find Creative Ways to Bring in Customers, Cut Costs
Technology is transforming the way people handle their bank accounts. Rather than going into the branch every time they want a bank statement, they just print one online. Instead of driving to the bank to withdraw money, they go to the nearest ATM.
This may not seem like a big deal to the public, because banks are still getting business. But it is not the business that brings in the big bucks.
Banks are facing new guidelines and regulations almost every year that cut into their profit margins. Thus, they rely on loan programs, money management services and investment opportunities to drive their profitability.
The more mobile customers get, the less likely banks are able to promote these services to their customers. This is forcing some branches to get creative.
As a way to bring in more customers, some banks are converting parts of their branches into yoga studios, coffee shops, meeting rooms and restaurants, according to the Boston Globe. These businesses may not seem like they connect well to the banking world, and, in truth, they don’t. But banks do hope they bring people in the door.
Other branches are embracing technology and trying to use it in their favor. Rather than having staff members at the branch, they make their loan officers available via video conference to talk to their customers. The loan officers can work with bank customers from multiple offices at that point, which reduces the overhead cost for the bank. It’s just one more way banks are trying to pinch pennies.