Tech-driven efficiency is not the proper goal for branch banking

Adobe Stock

A recent shopping experience reminded me of conversations I’ve had with bankers over a couple of decades about the evolving role of “self-service” technology in organizations. In particular, it took me back to one conversation from almost 20 years ago.

A community bank president shared, “We have to be careful that we don’t allow better technology to lead to poorer service.”

At the time, I’ll admit, I was skeptical. I suspected his caution had more to do with avoiding technology investments. But over the years his words have rung in my ears from time to time.

One such instance occurred during a recent visit to a national chain store where I’ve shopped for running shoes many times. I’m certain that my family and I have purchased dozens of pairs of shoes there over the years.

The process has been simple and effective: Find a shoe on display, show it to an employee and let them handle the rest. They used a handheld scanner to check inventory, retrieved your size and helped with suggestions if needed.

It’s a system that worked well. Or at least, it used to work.

On my latest visit, I encountered their new “upgraded” system. Customers now take the shoe to a centralized scanner, scan it themselves, enter their size, etc.

Along with your name, they have you enter the color shirt you’re wearing so employees can locate you. That seemed like an unnecessarily confusing step to many. But I’m sure a consultant convinced the chain that was useful information.

High tech? Sure. Efficient? Not really.

The result I observed was chaos. Customers fumbled with the system, lines formed as people struggled to figure it out and frustration mounted.

In this store’s previous process, employees weren’t just shoe retrievers; they were friendly hosts and advisors. They could suggest alternatives, offer insights about popular products and create a personal connection.

The new system seemingly strips away that role, turning the employees into little more than runners for the machine.

The role of employees, who were once actively engaged in chatting with and helping customers, was diminished and their disengagement was clear.

They appeared to retreat to the back, waiting for the system to send them information on what shoes to bring out.

After 25 minutes, I had tried on exactly one pair of shoes. In the past, I would have likely tried several and made a purchase in less than 15 minutes. Frustrated, I left without buying anything.

Judging by the number of other shoppers leaving empty-handed, I wasn’t alone.

This experience highlighted a fundamental truth to me: Technology should not degrade human interaction — especially in a setting where personal help, like in a bank branch, is a vital key to the customer…