Less than 10 mins
Building Connection Using Physical Spaces In Finance
Relationships between banks and their customers are far more fragile than before. Whilst it is clear then that the digital platforms are sufficient to service and maintain relationships at a functional level, we believe that growth can be achieved by offering a far more compelling and targeted offer within the physical world – enabling brands to identify where the untapped potential lies.
A focus on KIN-NECTION:
In our 2025 Insight Report we identified that there will be some key drivers that will influence behaviour throughout this year. These drivers are; our consideration for the planet, the influence of politics, the economy, increased awareness of health and the role of technology. We imagine that these drivers will prompt people to look for interactions that feel less superficial, they will challenge how we work and live, and build a desire for deeper, more meaningful experiences. We know that as people look for deeper connections – with themselves, their peers and the World around them - they will seek out experiences that provide these opportunities.
Banks are consistently encouraging their relationships with customers onto digital channels – based on a general acceptance that the majority of their customer base is ‘mobile first’. The changes in consumer behaviour and adoption of digital technologies has seen a decline in branch numbers across the UK to below 6,000, a 50% decrease in numbers since 2014.
In an effort to cut costs and remain competitive in the market, the ‘branches’ that remain on the UK High St often operate with reduced hours and services. With banks and financial institutes now looking at alternative ways to continue to offer basic services, such as introduction of Banking Hubs, shared facilities co-funded by the 9 major UK banks, goes someway to address the impact of branch closures within local communities. However, we believe much more can be done. Financial brands are missing a trick by looking to serve customers in a traditional way at a lower cost, rather than looking for new ways to engage with the communities, businesses and customers they have left behind.
Within the financial industry there is an intrinsic need for trust, and part of establishing trust is built on connection. By understanding the brand, the products, the services, a customer will feel connected to the experience and the service they are receiving, thereby enhancing the transparency and ultimately trust. For financial brands, one way of deepening connections is through communication. This is a combination of brand storytelling so people understand your values and what you stand for, the way you intend to do business. However it is also more functional than that. To create connections with people there is a simple business need for them to be understand how the products you provide will meet their needs – so functional communication is as vital as emotional communication. This doesn’t mean the functional should lack emotion, anything but, it should immediately link the product to the persons needs – there should be an obvious connection between problem, need, life and solution.
Establishing a communication style that fosters connection is one thing, delivering that to customers is another. This is where digital and physical strategies are so important. There must be consistent messaging across both platforms, delivering the functional and emotional messages in ways that resonate with customers. Your physical spaces should be seen as a platform to tell your message, through the communications, the materials, the configuration of the space, the role of people and the role of technology. The sum of these parts build up your experience and all come together to tell your unique story. By using your spaces to communicate and connect people, as Is Mekan has done in Turkey, you can build loyalty and trust with customers, teams and the community.
Connection with communities is an essential role that financial brands can play. You have an opportunity to rethink the entire meaning of “branch” and to connect with consumers in a totally different way – ask them what they want and need, what does this space look like for them?
As we explored in our article in The Financial Brand It may be that you can place your ‘branch’ in unexpected places by funding what communities actually need and run your services from that. Could you offer the community a sports pavilion, a library, a co-working space? Be realistic about what the community needs and provide that first, then offer financial services from that place. That will build genuine connections with the community. It will enhance footfall, drive engagement, encourage conversation and most importantly, build trust. Which connects people to your brand.
Financial brands have an opportunity to rethink their experiences. Focus on the entire space as a platform or a ‘stage’ for communication and maybe even go so far as to entirely reconceive what the ‘branch’ could even be. This is about building connections with people based on understanding their life needs and underpinning that with trust. If you’d like to hear more about this topic, we are guest speakers at the Qorus Reinvent Forum Bangkok 2025 on the 20th Feb and Jon Blakeney’s talk will be looking specifically at this pressing issue.
