Branch Automation Is Alive Again

It seems branch automation applications have been around forever, but not defined properly, and little understood. Cheapskate bankers didn't care to spend money on it for two reasons: 1) It had to do with sales and service, something bankers believe should be an instinct, not a technology. 2) They also believed, wrongly, that it had to do with opening new accounts, period.I'm not characterizing small banks only. Thirteen years ago, I moved to Dallas and opened 14 accounts at NationsBank (now Bank of America). It was an act of loyalty. NationsBank had hired me for a special project. I returned my end of the quid pro quo. I didn't tell anyone at NationsBank headquarters. It was enough that Betty knew.

Large banks are often accused of impersonal service. Betty took care of me as if I were her brother. We were good friends for a long time until she did what every good bank employee does-got a better job. If Betty were not highly competent, I would have walked out two minutes into the first encounter. Betty's primary "technology" was the office worker's ubiquitous tool-an IBM Selectric typewriter, and lots of card forms.

Branch Automation is one of my favorite technologies because it is all about the customer. But it is also the strongest resource to gain market share. It begins working from the moment a stranger walks in the lobby door (unless of course, he's wearing a mask).

Bank tech providers understood that just as I did. The evolution took place like most bank tech solutions. Entrepreneurs jumped in first to develop, sell and support the applications. Then they sold their companies to the large bank tech companies. There are nine companies in Automation in Banking - 2009 that offer more than 14 solutions. Three of them are independent, single-solution companies.

The last time I gave a speech to an audience of bankers I titled it, "Technology Vendors Are Way Ahead-Bankers Are Way Behind" I cut to the chase and told them they all should have four pieces of solutions in their technology pie-a powerful core system, imaging of checks and permanent paper docs, a full scope branch automation capacity, and a universal electronic payments resource. I didn't waste my time telling them about the other 128 discretionary solutions that would be nice to have. When I left the podium to join everyone for lunch, there was a string of bankers following me. They all wanted to know who the best vendors were. No one asked me about branch automation.

So with that historical account, I now bring you great news. My favorite vendors reported that in 2008, Branch Automation was one of the Top 10 best-seller solutions-something that never happened before. What is the reason? Don't ask me; it certainly wasn't my speech. I could no more motivate a banker to implement the right technologies than I could influence them to start lending again. Go ask the vendors.