Banks in Great Britain have been working on their new strategy for years. Clear intentions can also be identified for the year 2020 as regards the development of new business areas. Banks and savings banks want to become more digital and closer to their customers.

How can companies succeed in implementing digitization according to their own ideas? And what role will customers in particular play in this development? We take a look at the basics of this development.

Number of branches further reduced

It has been apparent for years that the number of bank branches is declining. Most banks have a strong interest in withdrawing from the sparsely populated regions in particular. Where several branches used to be available locally, they are now being merged into a single branch. The aim is to reduce costs, where employees and rented space represent a very favourable starting point. The sharp drop in earnings due to low interest rates is one reason why this development is now virtually unavoidable in the industry.

Targeted marketing for online offers

But how can we succeed in persuading customers, who are very much stuck in the stores, to switch to digital offerings? The view is now gaining ground that this can be achieved primarily with the help of constructive online marketing. Every bank currently has its own content marketing campaign that is geared to the target group. But in the new year it is also important to give the content the right structure. The keyword link building is coming to the fore here. If the institutions succeed in creating an organic link structure, this is a particularly efficient way of search engine optimisation. Support from an agency such as Performanceliebe can also help to achieve this goal.

High-quality services are also an important means. It is true that direct banks were already able to provide these several years ago. But in the meantime the house banks have also succeeded in taking several steps in the same direction. The entire administration of accounts, the closing of savings plans and of course classic transfers are possible with just a few clicks and in a secure area. The important foundation for the changeover of customers, which is to be further accelerated in 2020, has thus already been laid.

No return planned?

The rationale behind current policy can always be traced back to the argument of low returns. The ongoing phase of low interest rates is indeed costing the banks dearly. But even in the event of a change in the interest rate situation, a return to the old model does not appear to be envisaged. Once a large proportion of customers have been successfully introduced to banking on the World Wide Web, the hoped-for increase in efficiency will be the desired positive effect of this development.

A positive outlook is thus already possible for the long-term profits that could be achieved with the help of an operating business oriented in this way. After all, when interest rates finally start to rise, it will be possible to increase the profits of the institutions significantly thanks to lower costs. It is this long-term positive outlook that is so inspiring the efforts to create a new business model these days. The changeover must now go smoothly and as hoped for.

Specialist staff for digitisation

The new demands that digitalization in the banking industry in particular is bringing with it also place new demands on the personnel employed there. First and foremost, it is no longer the classic customer advisor who is directly in the focus of the responsible persons. Instead, it is a matter of finding specialists for handling digital services in order to be able to cope with the competition.

The development that the house banks are experiencing in this category will be particularly exciting. While direct banks have always offered a digital service, the established institutions have only been building up their digital offering very gradually in recent years. Meanwhile, experts consider it unlikely that Volksbank, Kreissparkasse and Co. will be able to adapt to the digital pioneers within such a short time. In this way, the house bank will have to look for new points that will make it unmistakable in the broad range of products on the market and indispensable for the customer. A well-functioning digital offering that is also easily accessible to the older generation and offers them real added value can therefore be seen as an important basis that still needs to be fulfilled along the way.