Creating a virtual branch in the banking industry requires careful planning and the right tools to implement digital solutions. In this article, we want to pay closer attention to this process and explain how to build a virtual branch effectively. Did we grab your attention? Then, keep reading to find out more!
Table of Contents
What Do You Need to Create a Virtual Branch
Before we get to our step-by-step guide, we need to focus on the preparations. You cannot just start creating your virtual branch in the banking industry; you need to have the right resources for that.
Tools
The impact of virtual branches on banking is far-reaching, but it is the direct consequence of new digital tools that you can implement to build your virtual branches. Without them, you won’t succeed—you will simply be unable to build an effective infrastructure and stand out among your competitors.
This is why the first step towards creating a virtual branch is carefully selecting your software components… or opting for a complex, end-to-end platform like LiveBank. Let’s briefly look at its features now to show you why exactly our platform is great for creating virtual branches (and what functionalities you should be looking for in general!):
- appointment manager—small, crucial feature, as it will enable you to plan your resource allocation better,
- digital onboarding—coming with OCR, biometrics and AI; it’s a feature that enables you to streamline the onboarding process and conduct it fully virtually.
- workflow & case management tools—like the appointment manager, these are crucial to ensure that your teams work as intended and that no conflicts occur between physical and digital clients.
In addition, our platform comes with robust authentication features, AI tools to support your agents, and complex analytics to draw conclusions from, making it the perfect choice as your virtual branch software.
Do you need a digital solution to create a virtual branch? Discover our platform for personal banking!
Digital Contac Center
You should also consider whether you want to set up a digital contact center. However, this depends on the scale and complexity of your operations.
Ideally, a virtual branch should be built with your employees from physical branches, enabling them to sell better and faster using digital tools. Yet, if most of your branches have fluctuating client traffic, it might be a good point to set up a centralized unit to ensure that someone is always ready to answer client questions and offer new products online.
Team
Finally, you should evaluate which of your team members (or at least how many of them) may help create a virtual branch. After all, it’s impossible to release your employee’s time in all physical locations, some are simply too busy. Thus, you should think about your resource allocation before setting up your online services.
How to Create a Virtual Branch?
With all the above ready, you can create your virtual branch. What do you need to do in this process?
Train Your Team
Be sure that all your relevant employees know how to use the chosen platform—they will be ready to support your virtual branch if a need arises in the future. When the training is complete, you are ready to start offering services and boosting your sales online.
Deploy Your Platform and Kick Off with Your Virtual Branch
Deploy your platform, configure it, give your employees access, and test it. Did everything go smoothly? Then, it is time to go live with your virtual branch.
Evaluate Your Physical Branches
With your virtual branch in place, you must evaluate your physical branches. Which ones are underperforming? Are there any that could be redundant but are required to maintain accessibility to your services in a given area? List such branches.
After all, one of your main goals is to cut down costs and to achieve this, you’ll need to know which physical branches are redundant and where you should engage your employees to work both at the virtual and physical branch.
Close Redundant Branches and Promote the Virtual Branch
To fully embrace the benefits of virtual branches, you need to close all those physical branches that don’t bring enough profit (or, rather, generate too many costs) or transform them into phygital branches. At the same time, you need to promote the digital channels and show your clients that they can contact your organization via them. Phygital branches connect both physical and digital services in one place to bring a better experience, tailored to customer preferences. After all, you don’t want them to feel abandoned by your business.
Monitor and Improve
Finally, you should monitor the performance of your virtual branch and improve it when necessary. Here, we recommend looking at your competitors; see if there are any areas in which they are better than you (for instance, the speed of certain processes or the amount of contact with the CS agent), learn from them, and improve such areas. The competition will be fierce, so you need to ensure that your procedures and systems are as close to perfection as possible.
The Takeaway
Knowing how to create a virtual branch, you are ready to build it in your organization. Digital transformation is the future, and virtual branches will play a major role in this process. Especially since they can elevate customer experience, reduce operating costs, and increase sales (significantly!). Thus, do not wait or hesitate—invest in creating virtual branches as soon as possible. This will let you become a leader in the race and attract digital-focused clients before your competitors.
You might also be interested in reading: The Virtual Alternative for Traditional Banks
