What Are Virtual Branches in Banking? Virtual branches are exactly what the name suggests—a team of employees solving cases from all over the country remotely. Such branches can have a physical presence (in the form of a digital contact center). Yet ideally, you want to build them with employees working in your already existing physical branches.
How to create a virtual branch? Read our guide!
Virtual Branches have numerous benefits, but their cost-efficiency is perhaps the most important one. It’s the result of several variables—let’s look into them now.
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Increased Productivity
First of all, virtual branches enable you to boost productivity across your whole organization. Many employees in physical branches spend a good chunk of their time idle since there are no customers to serve. When provided with access to a virtual branch, they can use this time to solve cases online, enabling them to create more value for the same cost.
To add to that, virtual branches operate on complex IT solutions designed to boost efficiency even further. From automated customer onboarding, to case management systems and AI Assistants—all these tools take productivity to an even higher level.
Lower Operating Costs and Investments
Another reason behind the cost-efficiency of virtual branches is related to the investments you need to make to set up them. If you don’t build a digital contact center, all you have to invest in is the IT tools—you don’t need any physical infrastructure. In the end, this means that they generate lower costs, boosting the ROI and providing you with a steady profit stream.
Higher Accessibility
Virtual branches are also much more accessible, meaning that you can reach potential clients that would otherwise be beyond your range. This translates into higher profits.
Additionally, such accessibility enables you to embrace the optichannel approach—let the clients use these communication channels that are most convenient for them at a given time. This helps you deliver better customer experiences, which leads to higher satisfaction, increased loyalty, and higher retention rates.
Discover how LiveBank can help you become a truly optichannel bank!
Scalability
Finally, virtual branches are scalable, which adds to their cost-efficiency. Since all you have to do is include more/fewer employees in your physical branches in the project, you can adjust the number of people working in them depending on the demand. This way, you’re ready for everything that happens in the market, from governmental programs promoting mortgage loans to financial recession.
Conclusions
The cost-efficiency of virtual branches is a major advantage for banks, but it’s not the only one. Improved customer satisfaction, higher accessibility, and scalability all make them a great choice. So, what are you waiting for? Set up a virtual branch at your bank and harvest the benefits. And, if you’re looking for the right IT solutions to support you, discover LiveBank24—our customer engagement platform designed for financial organizations, a perfect hub for your virtual branch!
Did you like this article? Then you should also read: The Impact of Virtual Branches on Traditional Banking Models
