Latest news with #retailbanking
Yahoo
4 hours ago
- Business
- Yahoo
Hybrid branch-bank models & digital inclusion in retail banking
Retail banking has undergone profound shifts over the past decade. Digital channels have undeniably transformed service delivery and broadened financial inclusion. Yet, despite the rise of mobile banking apps and AI-driven tools, the physical branch continues to play a vital role - especially in fostering trust, supporting the financially vulnerable, and anchoring community relationships. The hybrid branch-bank model is not simply a compromise between old and new. It is a strategic integration - blending the familiarity and assurance of in-person banking with the convenience and efficiency of digital services. This evolution is not driven by nostalgia but by customer demand across demographics and regions. Hybrid models reflect how real people live, bank, and engage. In emerging markets, branches remain the gateway to formal banking. They provide critical services where digital penetration remains low or inconsistent. And even in digitally mature countries, certain customer segments - the elderly, microentrepreneurs, and those with accessibility needs - prefer or rely on face-to-face interactions. Branches are not obsolete; they are being redefined. A modern hybrid branch is no longer a transactional venue. Instead, it becomes a consultative hub - a space where complex financial decisions are discussed, where small businesses are nurtured, and where financial literacy is advanced. The future branch will be smaller, smarter, and more purposeful. It may have fewer counters, but it will have more tools - biometric authentication points, digital onboarding stations, and live remote advisory services. In the hybrid model, branch staff are empowered to play broader roles. The traditional teller role is evolving into that of a universal banker - someone capable of guiding customers across physical and digital touchpoints. Upskilling, soft skills, and data literacy are becoming as important as operational knowledge. This human-centric approach adds warmth to technology. Importantly, digital inclusion must not be an afterthought. In designing hybrid models, banks must ensure that technology is not a barrier. Interfaces must be intuitive. Language support must be thoughtful. Accessibility features must be embedded. And above all, empathy must underpin every digital journey. This is how we ensure inclusion is meaningful and sustainable. Crisis periods have reinforced the value of having dual infrastructure. When digital platforms faced outages or cybersecurity threats, branches served as fallback anchors. Conversely, during lockdowns, mobile and online channels ensured continuity. Together, they build systemic resilience - something every modern bank needs as part of its risk strategy. Another advantage of the hybrid approach is the capacity to drive personalised experiences. Customer insights gathered digitally can be deepened through human interaction. A digital trigger - say, a mortgage query - can lead to an in-branch consultation. This cross-channel intelligence, when handled responsibly, can uplift customer satisfaction and reduce churn. The regulatory environment is also evolving. Hybrid models offer a proactive response - ensuring no customer is left behind, while also enabling banks to comply with evolving global mandates around financial access and consumer duty. Banks that embed digital within physical branches can serve communities more consistently and transparently. Additionally, there is a growing opportunity to repurpose branches as centres of community engagement. From hosting SME workshops to facilitating digital literacy drives, branches can serve a broader social role. These initiatives not only enhance financial inclusion but also reinforce a bank's standing as a trusted local partner. Data analytics also plays a pivotal role. By leveraging in-branch behavioural insights and digital footprints, banks can personalise services, improve compliance, and reduce operating costs. But this must be done with care. Customers expect transparency - they want to know how their data is used and why. When done ethically, data can be a force for empowerment rather than exclusion. This shift to hybridisation is not merely a tactical adjustment but a reflection of long-term structural change in customer expectations. Customers today want contextual banking - where the service, advice, or access is timely, relevant, and seamless across platforms. A hybrid branch delivers that continuity. One important factor often overlooked is emotional intelligence in banking. Human interactions at branches still serve an irreplaceable role in resolving distress, clarifying complexity, or simply reassuring clients during uncertain economic times. While algorithms can recommend, only people can empathise. From a regulatory perspective, hybrid branches align with growing expectations around inclusive access and responsible service models. As banks transition further into digital ecosystems, supervisory bodies are placing greater emphasis on fairness, reach, and customer understanding. Maintaining localised, digitally supported branches is one of the most effective ways to ensure these priorities are met in practice. Globally, we observe that national strategies around financial wellbeing - such as the UK's Consumer Duty or India's Jan Dhan mission - align well with hybrid frameworks. Both emphasise simplicity, reach, and financial literacy. A branch with integrated digital advisory services can execute this vision at scale. Hybrid models are also better suited to engaging younger customers, who may begin their journey digitally but require guidance on milestone decisions - buying a home, saving for education, or starting a small enterprise. These are moments where in-person conversations add trust to technology. Cost efficiency is often cited as a barrier to retaining physical branches. However, data shows that branches reconfigured for multi-functionality, co-location with community services, and intelligent workforce deployment can achieve profitable impact. It's not about square footage; it's about strategic utility. Leadership teams across global retail banks are increasingly looking at hybrid not as a transitional model but as a permanent backbone. It enables a distributed presence, resilience in operations, and a human-digital blend that reflects modern service economies. Banks that act now will shape the next decade of responsible banking. To be clear, this is not a nostalgic defence of the branch. It is a forward-looking argument grounded in customer data, regulatory trends, and operational resilience. Digital-only may scale, but hybrid delivers sustainability - with impact rooted in real people, real lives, and real outcomes. In summary, the hybrid branch-bank model is a dynamic, inclusive, and resilient response to the evolving landscape of financial services. It retains the best of traditional banking - personal trust, familiarity, and presence - while layering on the tools of tomorrow. As financial leaders, the onus is on us to ensure that our strategies reflect not just digital ambition but human purpose. Dr. Gulzar Singh is Founder & CEO of Phoenix Thoughtworks "Hybrid branch-bank models & digital inclusion in retail banking" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
BNP Paribas targets profit rebound at French retail arm by 2028
PARIS, June 26 (Reuters) - BNP Paribas plans to revive profit at its French retail division by 2028 via sales growth and headcount cuts, the euro zone's biggest bank said on Thursday, after weak results at the unit dragged on its share price. The bank said in a presentation its French retail and consumer finance unit, CPBF, is targeting a return on normalized equity above 17% by 2028, up from 9.8% in 2024. This turnaround will be driven by average annual revenue growth of more than 5% between 2024 and 2028, largely fuelled by a recovery in net interest income – the difference between what a bank earns on loans and pays out on deposits. BNP expects revenue growth to outpace cost increases over the period, allowing for improved profitability. This will be notably supported by a reduction in headcount, though the bank said no voluntary departure plan was in place. "In France, we intend to continue adjusting our footprint to match client needs. Since COVID-19, customer behaviour has changed, and we must keep adapting," CPBF Chief Financial Officer Maryline Anglaret told investors. The group plans to reduce both the number of branches and so-called full-time equivalents (FTEs), a standard measure of workforce size. BNP said it is targeting an average annual FTE reduction of 2.2% to 2.5% between 2026 and 2030. BNP Paribas operated 1,545 branches in France at the end of 2024, down from 2,095 in 2014. The bank has told employee representatives it plans to accelerate closures, with around 500 branches expected to shut by 2030, according to French business daily Les Echos. The bank's French retail unit head Isabelle Loc told investors there was no specific target for the number of branch closures. Other savings will come from streamlining support functions, cutting real estate costs, pooling ATMs with other banks, and using artificial intelligence, BNP said. In 2024, CPBF accounted for 13.5% of group revenue and 8.2% of BNP's pre-tax income, it said.
National Post
2 days ago
- Business
- National Post
Customers in Canada Increasingly Turning to Retail Banks for Advice, J.D. Power Finds
Article content RBC Ranks Highest in Retail Banking Advice Satisfaction Article content TORONTO — The financial health of bank customers in Canada—who are pressured by inflation, the rising cost of living and growing personal debt—has been worsening during the past few years. Currently, more than 44% of bank customers are considered financially vulnerable, 1 a jump from 36% five years ago. According to the J.D. Power 2025 Canada Retail Banking Advice Satisfaction Study, SM released today, customers are increasingly turning to their banks for advice to help navigate daily financial challenges, with 71% expressing concern about the cost of living and 36% saying they're struggling to manage housing costs such as mortgage and utilities. Article content Article content 'The eroding financial health of customers and their fear that economic conditions may worsen are driving customers—especially younger ones with growing deposits—to seek financial advice from their retail bank at an accelerated pace,' said Jennifer White, senior director for banking and payments intelligence at J.D. Power. 'This combination presents a golden opportunity for retail banks to rise to the challenge and offer services and advice that go beyond the transactional. Customers are shifting their focus from longer-term goals such as investment and retirement planning to more immediate concerns like paying bills, reducing debt and sticking to a budget. Banks that are attuned to their customers' pain points and can provide relevant and frequent financial advice will be positioned to benefit from a loyal customer base.' Article content Below are additional key findings of the 2025 study: Article content Appetite for bank advice is growing: More than one-fourth (26%) of bank customers say they are 'very interested' in receiving bank advice or guidance, up from 19% in 2021. Interest in bank advice is particularly strong among immigrants who have lived in Canada less than two years (47%), as well as among affluent customers (32%) and young mass affluent customers (31%). Article content Shift in advice focus: While investment- and retirement-related advice continue to be the most sought-after topics, the study reveals a shift in customer priorities since 2021. Interest in advice addressing immediate needs such as ways to pay bills on time has increased 4 percentage points and borrowing/credit-related guidance has increased 2 percentage points. In contrast, demand for investment- and retirement-focused advice has declined 7 percentage points and 4 percentage points, respectively. Article content Rising satisfaction with advice: Banks seem prepared to meet demand as customer satisfaction with the financial advice they are getting from their bank has improved from 2024. Overall satisfaction is 579 (on a 1,000-point scale), 13 points higher than a year ago. Key drivers of this improvement include the frequency, quality and relevancy of the advice, as well as the level of concern financial institutions show for their customers' needs. Article content Advice recall stalls: Although 49% of customers say their bank has done a good job of making their interactions memorable, the trend has plateaued this year. This signals a need to find more effective engagement strategies. The study shows that strong marketing communications that affirm and reassure customers that the bank is there for them when needed (on demand) is the preferred approach. Article content Study Ranking Article content RBC Article content ranks highest in customer satisfaction for a fifth consecutive year, with a score of 595. Article content CIBC Article content (590) ranks second and Article content Scotiabank Article content (580) ranks third. Article content The Canada Retail Banking Advice Satisfaction Study includes responses of retail bank customers in Canada who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. It measures customer satisfaction with retail bank advice/guidance based on performance in five core dimensions on a poor-to-perfect rating scale. Individual dimensions measured are (in order of importance): clarity of advice; concern for customer needs; relevancy; quality; and frequency of advice. This year's study, which includes responses of 2,582 retail bank customers, was fielded from January through March 2025. Article content In addition to bank financial advice ratings, the study also provides financial health support index benchmarking data that evaluates the proficiency of banks and credit card issuers in delivering financial health support to customers and includes such services as helping customers make better financial decisions or helping them meet savings, creditworthiness or budgeting goals. Article content Top-performing banks in the banking financial health support index are (in alphabetical order): CIBC and RBC. Top-performing credit card providers in the credit card financial support index are (in alphabetical order): Desjardins, RBC, Scotiabank and TD. Article content For more information about the Canada Retail Banking Advice Satisfaction Study, visit Article content J.D. Power Article content is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behaviour, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies. Article content Article content Article content Article content Article content Contacts Article content Media Relations Contacts Article content Gal Wilder, NATIONAL; 416-602-4092; Article content gwilder@ Article content Article content Geno Effler, J.D. Power; West Coast; 714-621-6224; Article content Article content
Bloomberg
06-06-2025
- Business
- Bloomberg
BNP to Cut 200 Branches by End of 2026 to Kick Off Retail Revamp
BNP Paribas SA Chief Executive Officer Jean-Laurent Bonnafe plans to cut hundreds of domestic retail branches in an effort to lift profitability at a business that has struggled for years. In a first step, the French lender plans to close around 80 branches this year and another 120 next, according to people familiar with the matter. Headcount in the branch network is expected to decline by 5% a year, while staff would be added in online and phone banking.
Finextra
02-06-2025
- Business
- Finextra
PAObank names chief executive
PAO Bank Limited ("PAObank") announces the appointment of Mr. Ronald Iu as Chief Executive and Executive Director of the Board. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Mr. Iu will lead the management team of PAObank to further leverage advanced financial technology, expanding our presence in small and medium-sized enterprises ("SMEs") and retail banking, thereby creating greater value for our customers. Mr. Iu has over 20 years of solid experience in banking and finance. He held various leadership positions in global and local financial institutions, including China CITIC Bank International, Standard Chartered, PrimeCredit and GE Capital (HK). Prior to joining PAObank, Mr. Iu served as the Chief Executive of Airstar Bank and ZA Bank. His extensive experience spanning business management and strategies, risk management and product innovation has given him a deep understanding of customer needs and market trends, bringing unique insights and substantial experience in the development of digital banks. Mr. Ronald Iu said, "I look forward to working together with the management team and colleagues at PAObank to create better products and user experience for SMEs and individual customers. As PAObank marks its fifth year, we are embarking on the next phase of our business direction and strategy, placing more emphasis on retail banking services. PAObank strives to become 'the convenient wealth management digital bank' in everyone's mind, offering innovative financial solutions that are efficient, hassle-free and flexible. While continuing to offer competitive deposit interest rates as part of client rewards, we will expand into diversified financial services and products to fully develop our retail banking capabilities. Together with my team, we will continue to drive innovation to lead PAObank towards the next milestone." Looking ahead, PAObank will continue to be the reliable business partner of SMEs, and create better retail banking products and user experience for customers. By leveraging financial technology and ongoing innovation, PAObank will continue to support the development of digital banks in Hong Kong, serving customers in Hong Kong and the Greater Bay Area.
