ABA Banking Journal - March/April 2016 - (Page 34)

FEATURE > RISK MANAGEMENT Laying a Foundation for Innovation Banks are developing new branch models and faster payment platforms to stay ahead of customer choices-and managing new risks that come alongside the innovation. BY HEATHER WYSON-CONSTANTINE B anks are in a state of transition-both physically and digitally. Gone are the days when customers would have to leave the comfort of their homes or stand on line during their lunch breaks to conduct transactions at their local branch. With the click of a mouse or the swipe of a finger, customers can now bank whenever and wherever they choose. Technology has enhanced the customer experience in many ways and has improved the efficiency of bank operations. At the same time, however, it has also raised customer and regulatory expectations and introduced new risks. And while banking is clearly migrating to online services, the branch still plays an important role in providing one-on-one customer service and meeting the needs of the community. 34 ABA BANKING JOURNAL | MARCH/APRIL 2016 These changes call for strategic thinking about how banks can stay at the forefront of branch technology and payment system evolution while ensuring the safety and security of their customers and their assets. Rewards of branch modernization come with risks Most bankers still find branch banking an essential part of their retail strategy, but the branch continues to evolve. Consumers have embraced ATMs and online and mobile banking, which allow them to conduct many transactions outside of their traditional branches. As a result, foot traffic within traditional branches has decreased, along with the average number of transactions per branch. Since 2011, the number of transactions has decreased from approximately

Table of Contents for the Digital Edition of ABA Banking Journal - March/April 2016

CHAIRMAN’S VIEW
UPFRONT
PICTURE THIS
LEGAL BRIEFS
LEARNING THROUGH LITERATURE
PUMPING IT UP
CRE AT A CROSSROADS
LAYING A FOUNDATION FOR INNOVATION
A PASSION FOR ADVOCACY
MARKETING
CEO ROUNDTABLE
WHY BANK CONSOLIDATION IN THE U.S. WILL LIFT OFF IN 2016
ABA COMPLIANCE CENTER INBOX
PAYMENTS
CYBERSECURITY
FRAUD
BOOKS FOR BANKERS
BOARD MATTERS
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS

ABA Banking Journal - March/April 2016

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