The Branch Isn’t Dead—It’s Evolving
Let’s address the elephant in the room. For years, analysts predicted the demise of the physical branch. Mobile banking would render them obsolete, they said. Customers would abandon the costs and friction of in-person banking. They were wrong.
Yes, digitization has dramatically changed consumer behavior. Routine transactions have migrated to mobile apps or the ATM. But this hasn’t eliminated the need for branches—it’s elevated their purpose.
The data tells a compelling story. According to a recent Global Data Consumer Survey, which captured insights from nearly 70,000 consumers across 41 countries, branches remain the preferred channel for high-value interactions: opening accounts, applying for loans, resolving complex issues, and receiving financial advice. Perhaps most striking: 50% of consumers under 45 still visit a branch at least once a month.
This isn’t nostalgia. It’s a preference. In fact, some institutions are expanding their physical footprint. Bank of America and Chase are both opening new branches in North America, in areas where they see opportunities to service communities in need of personalized financial advice. These aren’t legacy decisions—they’re strategic investments in relationship banking.
The Real Challenge: Breaking Down the Silos
Here’s where most institutions stumble—today’s consumers don’t think in channels. They think in journeys. They expect to start a mortgage application on their phone during their commute, upload documents from their laptop at lunch, and finalize the details with a specialist in their local branch—all without repeating information or encountering friction.
But most banking infrastructures weren’t built for this reality. Disconnected systems create disconnected experiences. A customer’s digital interaction doesn’t inform their branch visit. The ATM network operates independently from the mobile app. Contact centers lack real-time visibility into recent transactions. The result? Customers hit speedbumps precisely when they need seamless service most.
The institutions winning today have recognized that omnichannel banking isn’t a technology project—it’s an organizational transformation. It requires connected, data-driven systems that deliver continuity across every touchpoint: apps, branches, ATMs, and contact centers. It demands breaking down the silos between digital teams, branch operations, and technology groups.
This is hard work. It requires significant investment, executive alignment, and a willingness to challenge entrenched ways of working. But the competitive advantage it creates is undeniable.
Reimagining the Branch for Maximum Impact
If branches are here to stay, how do we maximize their value? The answer lies in deliberately shifting their role from transaction processing to relationship building. This requires a two-part strategy:
- First, empower your people. Branch staff should have real-time access to customer data, CRM insights, and product information that enables them to act as trusted advisors rather than transaction processors. When a customer walks in, staff should already understand their financial situation, recent interactions, and potential needs. This level of personalization doesn’t just improve experience—it drives revenue through relevant recommendations and timely interventions.
- Second, automate the routine. Advances in ATM technology have dramatically expanded what can be delivered outside traditional teller interactions. Cash deposits and withdrawals are just the beginning. Today’s intelligent ATMs can handle account inquiries, bill payments, check deposits, card services, and increasingly complex non-cash transactions. Some even connect customers to remote specialists via video, extending personalized service beyond branch hours.
By migrating routine services to these automated channels, you free up your most valuable resource—skilled bankers—to focus on the complex, high-value interactions where human judgment and empathy make the difference.
The Partnership Imperative
In every boardroom I visit, there’s agreement on the destination: seamless omnichannel experiences that delight customers and drive efficiency. The debate is always about the path.
Building these capabilities in-house is theoretically possible. It’s also expensive, time-consuming, and risky. The most successful institutions I work with have adopted a different approach: they’re reimagining their operating models and selectively partnering with specialists who can accelerate their transformation.
The right partners bring more than technology. They bring expertise in operational excellence, access to innovation without the burden of building it, and the flexibility of an OPEX model that aligns costs with outcomes. They enable banks to focus on what differentiates them—their customer relationships, their brand, their unique market position—while leveraging best-in-class capabilities for infrastructure and operations.
This is particularly true for
branch and ATM automation. When integrated properly with core systems, modern ATMs become intelligent touchpoints that bridge digital and physical banking. But realizing this potential requires both sophisticated technology and operational discipline—areas where specialized partners often have deeper capabilities than individual institutions can justify building internally.
What Winning Looks Like
The institutions that will thrive in the future aren’t those with the most branches or the slickest app. They’re the ones that have cracked the code on truly integrated experiences.
They’ve broken down organizational silos. They’ve invested in the data infrastructure that makes personalization possible. They’ve empowered their people with tools and insights. They’ve automated intelligently, freeing resources for higher-value work. And they’ve been pragmatic about where to build versus where to partner.
Most importantly, they’ve recognized that channels are simply means to an end. The end is serving customers in the moments and ways that matter most to them.
That’s not a future problem. That’s the opportunity right now. The good news? The tools to execute this vision are available today. Diebold Nixdorf’s new
Branch Automation Solutions portfolio is designed specifically to help financial institutions maximize the efficiency and value of their ATM and branch operations while improving the consumer experience. It’s built on the principles I’ve outlined here: seamless integration, intelligent automation, and operational excellence that frees your team to focus on what matters most—your customers.
What are you seeing in your market? I’d welcome your perspective on how consumer expectations are evolving in your region.
Contact us today.
Video originally featured on
Finextra TV
