What's happening to the bank branch?

If you're banking with Virgin Money UK, you don't walk into a branch, you walk into a lounge. Above, a map showing some of the Virgin Money lounges open to customers who want to play billiards, listen to a jukebox, watch a movie, enjoy free coffee or complete a financial transaction.

Each lounge is unique, because the design and amenities fit the building. In Wales, the lounge is located in a former pizza restaurant. Naturally, Virgin Money is serving free pizza to customers.

If you're banking with Metro Bank UK, you don't walk into a branch, you walk into a store. The company keeps its stores open late and on weekends to allow customers plenty of time to have coins counted or bring dogs in for free water or even open a new account.

And despite the growing popularity of digital banking, branches still attract customers. Metro's data show that 55% of its customers go to its stores. Of course, its customers also use mobile banking and online services.

Yet looking at the UK bank industry overall, more than 700 bank branches around the UK were closed in 2017--the largest number of closures ever recorded in one year. Are banks going to carefully tailor branches for each community rather than have one-size-fits-all banking? Or will they shrink the size or number of branches to reduce costs while offering selected in-person services? Let's see what happens in 2018.

This post updates the Metro Bank example in Chapter 11 of Essential Guide to Marketing Planning.

Can banks learn from burger marketing?

ANZ, a major bank in Australia and New Zealand, has a new head of retail distribution--Catriona Noble, a former McDonald's Australia exec who is bringing the lessons of 'burger marketing' to the bank.

Burgers and banking? Success in both requires training staff to have customers' needs in mind in every transaction. Speed and accuracy count in burgers and banking. Of course, the bank, like the burger place, has to evolve the menu of products in the portfolio over time as customers' requirements and preferences change. Technology can add convenience at the till or the cash machine, for burgers and banking alike.

At ANZ, Noble is sprearheading a reimagining of branches to give them a more comfortable ambiance. The idea is to blend in with the community and make customers feel at ease, encouraging repeat visits and positive brand associations. Not so different from burger restaurants, which after all must be refreshed and updated periodically.

"We have to compete on more than just price and more than just product; we have to be part of each local community," Noble says. "It is not like people want banks to be their second-best friend, but you do want to feel like you somewhat matter."

Will bank customers recommend ANZ to their friends? The Net Promoter Score is a key metric to be used in evaluating the bank's progress in satisfying customers. With NPS, customers are asked a single question: How likely is it that you would recommend this brand to a friend or colleague? Noble expects that applying NPS will result in a customer focus that differentiates ANZ from its competitors.


Competition is intense in the world of banking, and ANZ is investing in technology to enable its customers to bank when and where they want, at home or on the go. Still, branches remain a key element because of the opportunity to meet customers face-to-face and gain first-hand knowledge of their preferences, goals and concerns. ANZ is also reaching out via FB, LinkedIn, Twitter, YouTube and a news portal.