What if instead of heading to the bank, the bank came to you? This idea – a bank branch on wheels – has been floating around for a while, with mobile branches popping up both here in the U.S. as well as Canada, the U.K. and other countries.
The concept is an interesting one. One of the reasons for the decline in branch traffic is convenience. Customers have an easier time completing transactions online, and they don’t want to travel to the branch to do something they can do on their phones. But with a truly mobile bank branch, they can still have access to tellers and ATMs on their own street.
Recently, the mobile bank branch has gained popularity, as more financial institutions are considering creating their own banks on wheels.
“Mobile branches are beneficial for a variety of reasons.”
The perks of a mobile branch
A mobile branch is beneficial for several reasons. The first is the most obvious: Mobile branches can travel to the customer, increasing convenience and reach.
But the perks don’t end there. Mobile branches are also free advertising. Driving up and down the street with your company’s logo on the side of a van – not to mention the still-novel concept of a bank on wheels – will get people talking. Furthermore, a mobile branch can also serve as community outreach. Underbanked populations can be helped directly, and your branch can set up shop at community centers, shelters and low-income housing to serve people typically outside your target audience.
Therefore, a mobile branch can be a smart marketing tool that also works well to increase your customer base, not to mention keep the physical bank branch alive and well in our digital age.
What makes for a great mobile branch?
A mobile branch can go far beyond just an ATM on wheels. In fact, many of the best today are actual branches, complete with tellers, ATMs and all the associated technology needed to make it all work. Nearly every transactional service able to be completed in a traditional branch can happen in a mobile branch.
According to the Financial Brand, though, not all mobile branches are created equal. There are some traits that set the best apart from the rest. The first is technology. With the right tools, your mobile branch can be as convenient as the real thing. The lower cost of tech today has made adding ATMs and an Internet connection much easier and affordable, so mobile branches can have multiple self-service tools in place.
“Employees can be vital for a mobile branch.”
The next key to a successful mobile branch is the staff. Who you employ to work inside is incredibly important, if you want certain things from the branch itself. For example, employees are a must if you want to use the mobile branch to bring in new customers, open accounts or acquire financial products, like loans. If you just want an ATM on wheels, however, you likely don’t need the added expense of an employee.
Mobile could be a new direction
“Mobile banking” is already here to stay, but the mobile bank branch is a bit farther off. While a number of banks here and abroad have been using branches on wheels to reach more customers, the trend is still fairly young.
However, the concept is exciting. The bank branch is being phased out as technology takes over, and the mobile branch is a pairing of both the old and the new. This means financial institutions can balance the benefits of both worlds and still connect with customers. While the mobile branch will never replace the brick-and-mortar branch entirely, it could be the perfect complement in the near future.