Transition from branch banking to omnichannel

Banks an old term gains new looks majorly due to the rapid technological improvements. The evolution started with implementation of branches in early 14^th century followed by the first ATM in 1967 which eventually lead to many ATMs all over. Customers were fortuned by customer care centers in 1980 which zoomed into interactive voice response systems (IVR).

As internet got its name and fame, banks adopted online services in mid 1990s which also gave birth to mobile services in 2000. It is all about the competition that gives the temptation to get adopted to all these technology irrespective of the cost. Technology improvement at any cause hasn’t reduced the employment opportunity in banking industry. But, it has reduced the mobility in cash. A recent regulation by RBI which says maximum 5 ATM transactions are allowed per card has its major motive to reduce cash mobility and increase virtual transactions. This regulation also increases the demand for banking instruments such as debit and credit cards, DD, cheques etc. The bottom line of this regulation is not only to reduce the cash mobility but also to bring in safety factor. A very recent trend in transactions is that customers can make their payments through mobile in shops from now on.

This even reduces the burden of carrying their cards.  This technology has been implemented in abroad which can be done through I-phones as of now. Soon it will be extended to other mobiles and hope to get this feature in India soon. Development in digital channels at any cause didn’t abandon the traditional methodologies.

Still traditional banking has its own demand. Technologies though have been mostly utilized by the town and city population, the success can be owned only when it can be implemented in the rural areas also. Now, omnichannel is the buzzword for bankers. As customers today are too much into sophisticated services around them banking also has to bring in comfort. So, adoption of omnichannel would make them bring in “wow service” to the customers through various touch points. Innovations has no limit, beyond which adoptions has no scaling. Innovations and adoptions cycle bring in a high-tech service experience in all fields and banking is no way an exception to it.

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