One of the things that make channel management such a challenge for banks is the fickle nature of the typical consumer. A new piece of technology may poll well in research and may get downloaded by many consumers. But it may not get used as much to actually execute financial transactions, which can impact both technology and staff resources in other channels.
That makes multi-channel management a task that's attracting the attention of some of the biggest financial technology players. Infosys, for example, is making
At SunTrust Banks, much of the challenge of determining the right mix of technology and resources for each channel — and making sure the channels can interact in a consistent manner — falls on the shoulders of Tom McDermott, the senior vice president of cross-channel strategy for the $172 billion-assets Atlanta-based bank.
McDermott, who's been in the position for about two years, oversees a multi-channel mix that covers branches, ATMs, online, mobile banking and other venues. McDermott recently met with BTN to discuss cross-channel strategy, and where the opportunities to tap new channels will reside in the future.
BTN: What's the biggest challenge in determining consumers' disposition toward different channels, and how that translates into usage?
McDermott: You have to use analytics and study actual customer activities, in addition to their attitudes toward new channels, to determine how their needs fit the role of different channels at the bank.
BTN: What are some things you've found out about customer behavior?
McDermott: Customers like to use automated channels such as the web and mobile to shop and do some transactions. But we've found that most customers still want to open [a new relationship] in a branch. So our strategy for those channels has to meet those [functional] needs. You also have to determine the proper staffing and resources to handle customers' behaviors in each branch.
BTN: Why is it so difficult to determine how successful a new channel is at reaching consumers?
McDermott: A lot of people will say they like or want to try new technology or a new channel, but they are not comfortable actually using the new technology. [In polling] people may say they are interested in a new way of making deposits at an ATM, for example, but change in actual behaviors is still the biggest step, and that's what you have to look at.
BTN: What are the main technology barriers to the goal of an optimized allocation of resources to different channels?
McDermott: A lot of the [underlying technology] systems at different channels don't talk to each other. So we have done a lot of work on integrating systems [to improve data flow for analysis] and we're working together on cross-channel strategy among different departments… [the bank] combines consumer banking, marketing and technology teams as part of an effort to determine consumer channel behavior and how to respond.
BTN: Are there new channels or devices that have caught your eye?
McDermott: Tablets will be a big thing. There will be phenomenal growth in tablet use for financial services. Tablets are lightweight, you can carry them around, and there's a larger screen, which helps in user experience and usability. And you can get your financial apps on a tablet.
