A study commissioned by Wincor Nixdorf AG predicts that in 2017, banks worldwide will invest approximately $16 billion in branch transformation and related technologies, a company news release said. The study was conducted by IT market research and consulting company International Data Corp.
Jens Bohlen, a member of the Wincor Nixdorf board of directors with responsibility for the company’s global banking business, presented results from the study at the company’s international management seminar Oct. 22–24 in Istanbul. He said that the bank branch continues to be a valuable delivery channel, but it must transform itself.
Key factors in the success of branch transformation projects, according to the study, are differentiation in branch type within the branch network, an improved customer experience, and the option of carrying out cash and other standard transactions quickly and easily.
“Worldwide demand for automation technology is rising,” said Wincor CEO Eckard Heidloff. “We want to support banks around the world through software in particular in implementing branch transformation projects, optimizing omnichannel sales and improving the customer experience.
Wincor Nixdorf hopes to double its software sales over the medium term to some 600 million euros ($762.5 million), the release said.
The IDC study, “Integrating the Branch in the Digital World,” maintains that the success or failure of a branch network is dependent on its acceptance by the customer.
Not only do branch, online and mobile channels need to offer perfect service individually, but they also must be completely integrated into the digital world, which is where more and more customers spend their time and manage their banking business.
It’s an enormous challenge, but experience shows that customer satisfaction increases when the branch infrastructure is improved, the release said.
“The results of the IDC study suggest that an optimally positioned branch network and the use of the latest technology can bring a 25 percent increase in customer contacts with a simultaneous gain in efficiency of around 30 percent,” Bohlen said.