2020 Foresight: Self-Service Branch Banking

Transcription

1 2020 Foresight: Self-Service Branch Banking Product Code: VR0945MR Published Date: September

2 TABLE OF CONTENTS TABLE OF CONTENTS 1 Executive Summary Global Snapshot on Self-Service Branch Banking Global Snapshot Key Drivers Evolution of Self-Service Branch Banking Self-Service Branch Banking Models ATMs Assisted Self-Service Branch In-Store Self-Service Terminals Flagship Self-Service Branch Emerging Trends and their Impact Asse ssments Operations Trends Developed economies Emerging economies Technology Trends Developed economies Emerging economies Regulatory Trends Developed economies Emerging economies Implementation Strategies and Case Examples Best Practices Adopted Redefining branch banking with the introduction of self-service kiosks Adoption of innovative technology to provide improved and secured banking experience Partnerships and collaborations to offer technologically-advanced solutions Integration and automation of the banking operations Expanding self-service branch to enhance retail banking footprint Case Examples JP Morgan Chase redefined its branch banking with the introduction of self-service kiosks Wells Fargo s introduction of mini -branches to increase business in the US Introduction of the world s first contactless ATMs in Spain by la Caixa RBS aims to improve its retail banking operations in the UK Development Bank of Singapore (DBS) signed up Wincor Nixdorf to design new self-service branch Royal Bank of Canada introduced self-service kiosks with video-enabled assisted services Italy's UniCredit opts for CINEO services from Wincor Nixdorf Banco Bradesco s introduction of a technologically-advanced branch in Brazil Absa Bank (Absa) recruited NCR to upgrade the self-service branch banking in South Africa China Minsheng Banking Corporation (CNBC) integrated its self-service branch banking Appendix Methodology Contact Timetric Foresight: Self-Service Branch Banking Page 2

3 TABLE OF CONTENTS 6.3 About Timetric Disclaimer Foresight: Self-Service Branch Banking Page 3

4 LIST OF FIGURES LIST OF FIGURES Figure 1: Self-Service Branch Banking Initiatives Across the World... 7 Figure 2: Total Number of ATMs in Developed Economies (Thousand), Figure 3: Total Number of ATMs in Emerging Economies (Thousand), Figure 4: Evolution of Self-Service Branch Banking in Overall Retail Banking Industry Figure 5: Channel Evolution by Products and Services in Multichannel Banking Globally Figure 6: Channel Evolution by Products and Services in Multichannel Banking in Emerging Economies Figure 7: Evolution of Self-Service Branch Banking Figure 8: Self-Service Branch Banking Models Figure 9: Evolution of ATMs Figure 10: BBVA s Albi ATM Figure 11: Assisted Self-service Branch Figure 12: NCR APTRA Interactive Teller Figure 13: First Haw aiian Bank s In-Store Branch Figure 14: DBS Flagship Store in Singapore Figure 15: Emerging Trends and Their Impact Assessments Figure 16: Commercial Bank Branches per 100,000 Adults, Figure 17: Average Transaction Costs Across Various Distribution Channels, Figure 18: Total Number of ATMs (Thousand), Figure 19: JP Morgan Chase Introduced Self-service Kiosks in the US, Figure 20: Wells Fargo s Introduction of the Self-service Mini-Branch Model in the US, Figure 21: Wells Fargo s Self-Service Mini-Branch in the US Figure 22: la Caixa Introduced the World s First Contactless ATMs in Spain, Figure 23: la Caixa s Contactless ATM Figure 24: RBS Self-Service Branch Banking Expansion Initiative in the UK, Figure 25: DBS Signed Up Wincor Nixdorf To Design New Self -service Branch in Figure 26: Royal Bank of Canada Introduced Self-Service Kiosks Figure 27: UniCredit s Implementation of CINEO systems in Italy, Figure 28: Banco Bradesco s Introduction of Self -service Branch Banking Model in Brazil, Figure 29: Banco Bradesco s Adoption of Biometric ATMs and Robot Greeters in Brazil Figure 30: Absa Bank s SelfServ ATMs in South Africa Figure 31: CNBC s Global Integration of its Self-Service Branch Banking, Foresight: Self-Service Branch Banking Page 4

5 LIST OF TABLES LIST OF TABLES Table 1: Impact of Banking Regulations in Developed Economies Table 2: Impact of Banking Regulations in Emerging Economies Foresight: Self-Service Branch Banking Page 5

6 EXECUTIVE SUMMARY 1 Executive Summary The retail banking industry s banking channel has evolved from traditional full-service branch banking to alternate channels such as online, mobile and self-service. Full-service branches still play a key role in the distribution of banking products and services as banks rely on these branches to generate the vast majority of revenue. However, the operating expenses and infrastructural investments associated with full-service branches encourage banks to consider low-cost self-service branch banking to expand their market presence. Adoption of low-cost channels to achieve operational efficiency Banks have redefined branch banking following the financial crisis in order to maintain operational efficiency and to improve overall financial performance. While full-service branches remain the primary contact point for customers, banks realize that the expansion of the branch model is not sustainable due to rising real estate costs and changing consumer preferences. Low-cost channels such as self-service, online and mobile banking have therefore been gaining momentum. These channels are adopted with the aim of cost-effectively expanding business in rural and unbanked areas. Self-service branch banking ha s been evolving into an alternative to full-service branch banking Increasing competition in the global banking industry forces banks to introduce distinguished offerings from that of their peers. Technological advancements and shifting consumer preferences forced banks to innovate to provide improved banking experiences. Self-service banking has evolved into an alternative to full-service branch banking to cost-effectively offer banking services to customers. This channel offers banking services through automated kiosks, flagship branches, contactless ATMs and in-store self-service terminals. The advancement of self-service branches means consumers can conduct the majority of their banking transactions through ATMs and other automated banking channels. Advent of next generation self-service branch provide s convenience and security The advent of advanced technology has enabled banks to upgrade self-service branch banking channels to cater to changing consumer requirements. Due to technological advancements, there is a shift in consumer focus from traditional banking to more advanced and convenient channels. ATMs with videoconferencing, contactless, biometric and mobile features are some of the developments observed. While contactless ATMs speed up the transaction process, biometric ATMs enable customers to conduct secured banking transactions. Furthermore, in-store branches and flagship stores have evolved as a next generation branch banking model targeting the urban population and affluent demographics. Use of analytical software helps in understanding consumer transaction behavior Banks are increasingly adopting advanced technology to enhance their banking solutions and build strong customer relationships. Banks partnered with a number of analytical firms to develop frameworks and applications to obtain customer transaction data. The use of advanced customer analytics tools in self-service branch banking helps banks to understand transaction patterns, enabling them to offer personalized services which further results in increased customer acquisition and retention Foresight: Self-Service Branch Banking Page 6

7 APPENDIX 2 Appendix 2.1 Methodology Timetric s dedicated research and analysis teams consist of experienced professionals with industry backgrounds in marketing, market research, consulting and advanced statistical expertise. Timetric adheres to the Codes of Practice of the Market Research Society ( and the Society of Competitive Intelligence Professionals ( All Timetric databases are continuously updated and revised. 2.2 Contact Timetric If you have any queries about this report, or would like any further information, please contact info@timetric.com. 2.3 About Timetric Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and comment. Timetric helps over 1,500 financial services institutions and their partner companies around the world benefit from better, timelier decisions. Timetric provides: High-quality data including proprietary, specialized industry data, survey -based research, social media monitoring, macroeconomic data and forecasts Expert analysis from experienced economists and analysts, who use robust proprietary models, indices and forecasts Powerful proprietary visualization and workflow technologies developed over years of extensive investment Timetric has office locations in London, New York, San Francisco, Hyderabad, Seoul, Singapore and Sydney. It employs 500 people, including 150 analysts and economists, and 200 professional researchers. Timetric s Service s Intelligence Centers Timetric s industry intelligence centers are premium web -based services that provide access to interactive tools, comprehensive research and expert analysis in key sectors. They provide invaluable decision support presented in an easily digestible format and grounded in deep research. Timetric offers Intelligence Centers covering the following industries: Banking Insurance Wealth Construction Travel and Tourism Briefing Services 2020 Foresight: Self-Service Branch Banking Page 7

8 APPENDIX Timetric offers a range of briefing services, which offer cutting -edge thought leadership and expert commentary on and for the financial services industries. Driven by influential and respected editorial teams with years of experience in their respective fields, these services deliver need-to-know insight and analysis to decision makers across the financial services value chain. Timetric offers briefing services covering the following financial sectors: Accountancy Asset Finance Banking Cards and Payments Insurance Consultancy Timetric specializes in the development and delivery of innovative research solutions designed to provide competitive advantage and profitability to clients. Dedicated industry analysts and economists provide expert advice and actionable recommendations underpinned by Timetric s market and country knowledge, experience and proprietary databases, panels and research infrastructure. For projects requiring quantitative data, Timetric undertakes special research projects using its in-house panels and survey technology. These provide ready access to an extensive source of specialist business executives and consumers. Core capabilities include: Economic Re search and Consulting Highly experienced economists provide a number of bespoke research services covering subjects ranging from macroeconomic forecasting to sector outlooks, business presentations and workshops. Industry Analysis and Consulting Information analysis, independent expert opinion and advice, facilitated decision or strategic support, are provided by Timetric s extensive body of proprietary data and analysis models. It provides expertise-based consulting to deliver solutions that best suit its clients requirements. Quantitative Research Timetric connects with thousands of potential customers for various markets every day. Using sophisticated, interactive and highly engaging graphical surveys, research speed is increased and costs reduced, while ensuring that respondents deliver the insight needed. Qualitative Research Timetric s Qualitative Research service helps customers understand the emotional and cultural behaviors of a target audience. Timetric provides unique access through market-leading publications and information services to decision makers specifically brought together to discuss topics t hat are important to the client. Technology Solutions Timetric has built a unique technological platform to collect and visualize data, and employs some of the world s leading experts on data collection and visualization. Through technology and software co nsulting services, Timetric can provide clients with the means to gather and visualize the data the client has, or wants to collect Foresight: Self-Service Branch Banking Page 8

9 APPENDIX 2.4 Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Timetric. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Timetric delivers will be based on information gathered in good faith from both primary and secondary sources, the accuracy of which Timetric is not always in a position to guarantee. Timetric will accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect Foresight: Self-Service Branch Banking Page 9