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A recent study carried out by the International Data Corporation (IDC (News - Alert)) on behalf of Wincor Nixdorf, a German corporation specializing in banking hardware, software and services found that in 2017 banks worldwide will invest $16 billion dollars in branch transformations and the required technology.

Although branches have been and continue to be a valuable channel of delivery, they must be fully integrated into the digital world where customers are increasingly taking their banking business, the study found. In order for branch transformation projects to be successful it is imperative that branch types are varied within a branch network, customer experience is improved and common transactions are made much quicker and easier, often through automation. Customers then benefit from 24/7 service while banks profit from the lowered costs brought by extensive automation.

“The results of the IDC study suggest that an optimally positioned branch network and the use of the latest technology can bring a 25 percent increase in customer contacts with a simultaneous gain in efficiency of around 30 percent,” said Jens Bohlen, a member of the Board of Directors of Wincor Nixdorf with responsibility for the company’s global banking business. Bohlen presented the results of the study at the company’s International Management Seminar in Istanbul last week.

Self-service terminals can bridge the gap between physical branches and digital channels, as exemplified by Wincor Nixdorf’s “assisted teller counter.” Customizable screens and intuitive touch interfaces can ensure fast transactions without compromising security, and almost all banking business can be automated. In addition, the need for credit and debit cards at these stations as well as traditional ATMS can be eliminated by allowing customers to use their mobile devices for authentication instead.

For those who need to communicate with a representative, a one-click button can connect the customer to a video conference session with someone who can help immediately. This is especially beneficial to branches in rural locations, which can now offer assistance from specialists despite their relative lack of infrastructure.

“Worldwide demand for automation technology is rising,” said Eckard Heidloff, CEO of Wincor Nixdorf. “We want to support banks around the world through software in particular in implementing branch transformation projects, optimizing omnichannel sales and improving the customer experience.” He added that the company hopes to double its software sales to 600 million Euros over the medium term.