With the way digital banking channels are performing their banking activities for the customers, it seems that the millennial era is close to making physical bank branches a thing of the past. Customers are not visiting their banks’ branches like they used to before.
The way this generation is preferring and behaving, it has already made the largest share between US population and the employed population, at 26% and 34% respectively, without any doubt it will shape the future of the bank, as well as a good relationship between the bank and the customers.
The relationship between banks and customers will be slump very soon because third parties are providing remarkable service to manage their every single customers finance. It may be a big threat for banks.
There are some key point remarked,
- Online channel will be improved, the customer will reduce their visit at the branch and the branch will be very rare and if per transaction cost at the branch rise up it may become a reason to close the branch.
- Banks have to act very fast to survive in the market because third parties are providing digital banking service and consumer are picking them rapidly. For this reason, the relation between the banks and customers are disrupting and banks are losing cross- selling opportunity and branding.
- The ATM booth will disappoint like a phone booth. ATM booth will be nonessential very soon because of cash and check transactions and the physical branch will be the only source of visit instead of visiting the ATM booth.
- It is no doubt that Smartphone is going to occupy the foundation banking channel. One of the reason is mobile banking system and Smartphone can collect user data easily, for making a purchase and also paying utility bills, Smartphone is working instead of a bank card.