The Toronto-Dominion Bank is putting the Canadian retail branches at the center of their growth plan and is a new strategy to make the lender look like it was before.
Over the past five years, banks have become obsessed with fintech or financial technology, fearing that the software out of Silicon Valley will eat the industry. As this fascination increased, the brick and mortar branches were considered archaic and expensive, and they closed the branches of banks in both Canada and the United States, and at the same time cut the square footage of the places they were holding.
Recently, however, TD has realized that digital tools can do a lot. Human beings are social animals and do not lose face-to-face meetings for some important interactions.
Ie For customers, it's not branches or digital, iler says Teri Currie, head of TD's Canadian retail banking. "Both of them."
For the entire transition to digital channels, 80 percent of TD's customer acquisitions or new business still comes from its branches. On the other hand, the bank is re-investing in the branch network, which is the top priority.
TD is not the first domestic bank to emphasize the importance of branches. First, the Royal Canadian Royal Bank of Commerce announced a similar strategy in 2015.
But this change has more cultural significance for TD. After acquiring Canada Trust in 2000, the organization created a brand around old-fashioned banking and made a name for it through the escalation of former CEOs, Ed Clark and retail banking, the mantras highlighted by Tim Hockey – customer service and convenience. Branches were the center of this strategy, and the TD offered more working hours and more space in the community than in the entire community. To date, the Canadian banking contributes 63 percent of the bank's total profit.
The strategy began to change in 2014 when Bharat Masrani 's CEO was water. In the first year of its mandate, the TD spent two $ 686 million on restructuring. In both cases, branch optimization was the main focus. Next year they had executive revenues. Mr. Hockey left to conduct TD Ameritade, and some of the retail retailers' representatives, including the former retail branch, Tom Dyck, finally left.
Ms. Currie has previously served on human resources and then on digital banking strategy and later on. At that time, fintech was still all the rage. Unuz When I arrived, most of the questions I received from investors in 2016, çoğu How do you reduce your spending on the physical channel to meet your digital investment? " Said.
Because of this obsession, TD invested heavily in technology and today more than 80 percent of customer transactions, such as invoices and money transfers, are included in self-service forums such as mobile applications and online banking.
Despite this transformation, most of the customer gains continued to come from branches, making them critical for growth.
Building this TDH emphasizes the re-investment of its branches in a multi-faceted manner. First, physical formats are changing – fewer sellers, more wealth advisors; less total frame images, but larger meeting rooms. The inclusive vision is that branches can be used for branding and marketing, large TD logos and signage, and can now be considered as advice centers rather than processing centers.
Ler When it comes to complicated advice, when it comes to financing your children's education, when it comes to funding your first home, when people are investing for retirement, people face this capacity and ask for advice. The person in the eye said, Bay Andy Pilkington, chairman of branch banking, said in an interview at the newly renovated branch of TD in Toronto's Bay Street.
This also applies to young customers. The bank, with focus groups, said they would be able to do online research and shop online for thousands of years and would like to make suggestions to friends and family. In 1993, Ms. Currie from the Market Mall branch of Calgary started with the Canadian Trust.
The third pillar of TD's new strategy was built around talent, including re-energizing the branch staff. Last month, TD joined a symposium that emphasized the importance of the Canadian branch managers for the first time, bringing their 1.100 to Toronto.
Within the branches, TD also changes advice and measures how staff performance is measured. Over the past five years, the Canadians have paid more attention to cross-selling banks – that is, offering additional products to existing customers. All this is an effort to increase profits.
Recently, however, TD has invested in artificial intelligence tools that make deep dives through customer data profiles to evaluate risk appetites and investment profiles and then make recommendations based on the results of the algorithm. As for performance, the bank now includes customer feedback in employee scores.
Mr. Pilkington's goal is "to give more consistent advice across the network," he said.