The Future of Banking: The Death of Banker’s Hours
To understand the future of banking, take a look at the past. Remember “banker’s hours”? A generation or two ago, this term was a euphemism for a shortened workday, since the local financial institution was typically open from 9 a.m. to 4 p.m., Monday through Friday. Saturday banking hours were a novelty. Woe to the business owner who had to make a deposit after hours — his only option was the night depository vault outside the bank. Most people had to rush to the bank during their lunch hour on Friday to cash their paycheck, and applying for a loan meant taking at least half a day off from work. Those days, however, are long gone.
Welcome to the future of banking: Today banks are open with teller service for far longer hours, many of them seven days a week and on certain holidays. The ubiquitous ATM means customers are used to being able to deposit and withdraw money 24 hours a day. And mobile banking allows customers not only to bank whenever they want but wherever they want, as well. Transferring money in the supermarket checkout line or remotely capturing a deposit at the customer’s retail store is commonplace. Consumers conduct banking business at the ATM, on the computer and on smartphones. The majority of banking transactions can be carried out when the customer is nowhere near a physical bank building.
With convenience being paramount, those banks that can develop and deploy new technologies to help customers access their money and manage their accounts will gain market share. Considering the customer holistically will help banks design and promote new products and services that work for their customers. Understanding how, when and where customers want to conduct their financial transactions, and providing the technology and tools they need to do so, will allow banks of any size to succeed in this changing market. Those banks that are able to embrace the future of banking will enjoy more customer loyalty and a greater wallet share.