Examining banking trends in 2023

This is part one of a series looking at banking trends from expert perspectives.

We have now entered into 2023, and it's time to look ahead to see what's on the horizon for branches, self-service and overall banking trends this year.

In 2022, we saw a big push to make branches into spaces that advise rather than sell to clients. We also saw banks begin to heavily integrate appointment platforms to schedule consultations with members.

To learn more about these trends, ATM Marketplace is reaching out to a variety of experts starting with Jean-Pierre Lacroix, president of Shikatani Lacroix, a design agency focused on retail banking. Lacroix has been a regular speaker for the Bank Customer Experience Summit and has deep insights into both the employee and customer sides of bank engagement.

Q. What do you see as the most significant branch trend going into 2023?

A. We foresee three major trends going into 2023:

• Network alignment: With the growth of bank consolidation and the decline of the frequency of branch visits, financial institutions are rethinking their branch network through a process of opening new locations as part of market expansions, relocating existing legacy branches in growth areas and closing unproductive branches. We predict the most significant impact of the above in suburban and rural markets.
• Humanizing the branch experience: the pandemic has created a void in access to banker talent as part of the branch network. Keeping existing employees and elevating their skills will be at the forefront of next year's initiatives. Financial institutions are clear on the value of the branch in driving customer retention and growth. Our Future of Seamless Experience reinforces this, with most customer retention and growth occurring in the branch. Expect new training programs, rewards, and incentives in addition to the industry's active recruitment programs.
• Merging of physi-digital at the branch level: Institutions are structured in silos, with a significant portion of investment going towards digital transformation. However, customers are unhappy with their omnichannel experience as its disjointed and lacks a seamless experience. Bankers will start changing the discussion from omnichannel towards seamless experiences. With this new focus, how a financial institution's digital platforms integrate with the branch experience will become a higher priority.

Q. What do you see as the most significant technology trend going into 2023?

A. Let's look at the branch experience versus the other banking channels. The significant technology shift beyond the digitization of transactions is updating the bank's operating platform and consolidating the various account information into a single view of the customer. Bankers also prioritize appointment-setting technologies to provide a better customer experience and manage the staff peaks and valley service periods. In addition, many stalled digital signing initiatives due to the pandemic will be reactivated as bankers realize the importance of customization of messages within the branch experience. Finally, with fraud on a significant rise, expect to witness a higher investment in security and fraud prevention systems.

Q. What do you see as the most significant strategic adjustment banks will make in 2023?

A. Humanizing digital transformation is top-of-mind with bankers. I recently attended the most prominent fintech conference where the head of JP Morgan Chase noted they were spending over a billion dollars a year on digitizing their customer banking platform. With the investment comes a realization the pendulum has swung too far to the technology side, and there needs to be a shift toward humanizing the technology. In addition, there is a renewed focus on the branch customer experience towards a shift away from transaction to providing financial advice.