The Future of the Corner Bank in the Cloud

When predicting the death of anything, you can be wrong until you are right. The article outlines how banks established in the real world and are moving to the digital delivery model are bound by the laws and rules under which they were formed. But like so many things in our world, the reality is different from where and how it is viewed.

To this end, the bank has a diehard weapon. It can lock the consumer in short-term with deposit accounts and long-term with loans and mortgage. This allows the bank a daily, monthly and annual relationship with its customer. The bank has multiple retail touch points providing ample opportunity to continue to cross-sell and upsell additional services.

Mercator Advisory Group recognizes the advantages challenger banks have in delivering lower fees and advantages rates, but the incumbents have the majority of relationships with the public, and that seems to be holding fairly steady. The branch lends an additional aura of presence that can enhance the touchpoints outlined above. Bank branches are evolving, of that there is no doubt, but they will retain their physical presence in our neighborhoods.

Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group

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