The story may be apocryphal, but the legendary Wayne Gretzky, once asked to outline his philosophy of play in the National Hockey League, is credited with saying, “I skate to where the puck is going to be, not where it has been.”
As far as anyone can tell, he offered no advice on how to properly calculate the puck’s trajectory. And therein lies the dilemma for banks in the region trying to craft a comprehensive digital banking strategy: Over the years, they’ve had to figure out setting up effective ATM networks, implement on-line banking practices, address the explosion of smart-phone, iPad and tablet technologies and, coming soon is … what, exactly? Where is the doggone puck going?
The biggest changes have involved smart phones, which, for many of us, might as well be extra appendages. For bankers, they’ve been both a blessing and a challenge, notes Greg Bynum, president and chief operating officer at First Community Bank.
First, Bynum points out, the positives: “The utilization of online and mobile banking has reduced the amount of branch usage, allowing us to adjust our branch hours. The reduction in branch hours has allowed us to reduce operational expenses overall.” The potential payoff for that might be a reduced need for higher customer fees and a better bottom line. Until the other digital shoe drops, of course.
“The biggest challenge,” Bynum said, “is being able to provide the security while making these products easy to use and access. The consumer wants to be able to click one button and be able to do everything on their phone.” With the amount of fraud in the industry, making sure the person initiating the transaction is the authorized user is paramount, he said. “Until a consumer has an issue with identity theft they don’t want to go through the security process of dial authentication.”
Marc Maun, CEO of Bank of Kansas City, said there’s no denying that mobile technologies have changed the game.
“To put it simply, smart phones have changed the way our customers do their banking. To meet the changing needs of our clients, Bank of Kansas City is embracing all forms of mobile technology by adding mobile banking apps for the iPhone, iPad and Android, as well as building a mobile site configured for mobile devices surfing the Web.”
Indeed, the number of America’s banks have fallen from 18,000 not long after the ATM use began soaring in the 1980s to roughly 7,000 today [a decline mirrored on the credit-union side]. Yet the survivors have made banking more accessible today than ever before. After all, when was the last time you heard someone grousing about not being able to find a conveniently located bank?
As Bynum pointed out, the access afforded by new technologies also helps banks maintain relationships with their customers. Maun agreed.
“Without a doubt, the addition of mobile apps has increased Bank of Kansas City’s efficiency and we expect it will continue to do so,” Maun said. “For instance, if a client experiences problems, such as an unauthorized purchase, they know much sooner and contact us, since they are checking activity frequently and/or receive alerts rather than waiting for their monthly statement.”
His bank has embraced social media with accounts on Twitter and Facebook. Maun says they use the sites to include “local community involvement; information about the company, such as job opportunities; and financial information for all types of customers.” Maun says the bank can also use the sites to respond to customers if they have questions or need assistance. “By being active, we are able to offer customer service in the medium that they are choosing to be active.”
Mark Larrabee, president and CEO of Arvest Bank, came into the Kansas City market in 2010, just as the flag was being raised on the mobile revolution. That technology has proven to be a field-leveler, he said.
“These steps we’ve taken to keep pace with consumer wants and needs put us in the right position to remain extremely competitive in delivering the instant and on-the-go convenience customers have come to expect from their bank,” Larrabee said.
“Banks across the country are seeing their overall branch traffic decline with the rise of online and mobile services. However, this is also a challenge as we strive to maintain a personal connection with our customers and provide an excellent level of one-on-one customer service.”
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