A concrete example of Branch Transformation from the US is that of CapitalOne!
When considering branch network offerings, one thing that has become evident in the current US market is that CapitalOne is growing.
They attribute much of their deposit growth to their 'cafes'.
Yes Cafes, not branches.
Branding is key to making this approach work for the bank.
There is a subtle difference to the consumer, but a huge one to the Office of the Comptroller of the Currency.
The lack of vaults, teller lines and other branch staples reduces Capital One’s overhead. Deposits are taken through ATMs. And regulatory reporting is reduced.
And, most importantly, the format appeals to millennials.
CapitalOne has us asking a few questions
1. What do you think is their strategic approach to having a physical presence?
2. What makes them sure that they are taking the right approach?
3. What are they measuring in their branch success criteria?
4. Is this a good customer experience model?
5. What is the Return on Investment (ROI) for their branches? Have they reduced costs in their offering?
Leave a comment in the blog post with your thoughts ! We'd love to dig deeper into this idea in a way that is removed from our own echo chamber. Lovely as it is.
