What does the future of the bank look like? Depending on who you ask, it could be a totally online experience, filled with mobile apps and digital services. Or, it could look pretty much like it does today.
Of course, the real answer is probably somewhere in the middle, with a balance of technology and in-person services at brick-and-mortar branches. This question does highlight the problem with the bank of the future, though: planning. How can banks prepare if they’re not sure the direction the industry is going in?
This interesting dilemma was answered by Kevin Tynan, senior vice president of marketing at Chicago-based Liberty Bank, in an article for American Banker. And Tynan suggested that maybe the future of banks will look a lot like the future of health care.
Health care, banks share parallels
Tynan argued that the current health care industry shares many similarities with the financial services industry. The key comparison involves technology. Like banks, health care is being taken over by digital products and services, from electronic health records to online “doctors” like WebMD.
Another comparison is with the explosion of high-tech startups, explained Tynan. There are many in both the health care and banking sectors, with firms looking for ways to simplify service, reduce costs and improve the consumer experience. Other similarities include the rise of remote products. For example, doctors can now diagnose patients remotely, while banks can perform simple transactions remotely.
Right now, the evolution of technological health care is a bit farther ahead than it is in the financial services industry. Looking at health care could very well be like looking at the future of banking.
Health care balances tech, in-person service
If health care is any indicator, the future of the bank could balance the new technology with the in-person service we’re used to. In health care, patients still have a need to see doctors in person. However, technology can speed up service and simplify the entire process. For example, you can go in to have some tests done and check the results online that night.
The bank of the future will likely have a similar approach. It will offer up top in-person service and complement that with technology. Consumers can go into the brick-and-mortar branch to speak with a real banker, but that banker will leverage technology to make the whole experience easier.
This is why the best bank transformations don’t just focus on technology, they hone in on the people-side of things. New technology, digital platforms and tech startups don’t mean the end of the traditional bank as we know it. Instead, it will likely mean the beginning of a new relationship and a branch redesign that incorporates technology with the employees.
At the moment, this shift is underway in the health care industry. Banks that want a peak at what their future looks like – from problems to success stories – can check out what health care is currently doing.