Island residents could soon be able to see their bankers face to face on computer screens as the ‘digital revolution’ moves ever faster, it has been claimed.
Customers would be able to discuss banking issues at any time of the day or night with one to one meetings on their tablets, phones and other devices.
‘It’s a big area of opportunity but it will be driven by customer demand,’ said Peter Reid, new president of the Isle of Man Bankers’ Association.
He is island director and head of operations at Lloyds Bank International and revealed Lloyds were already trialling a new system in some areas in the UK where customers could talk about their finances face to face with trained members of staff.
Mr Reid told Business News he understood other banks were also looking at the same ideas and he believes it will only be a matter of time before the island tries it out.
He said it will be months before such a system operates in the island and space is being made available at the Lloyds International Centre of Excellence at Peveril Buildings, Douglas, where trials of the new system could take place.
Mr Reid told Business News: ‘We are in a digital revolution. It is changing so quickly.’
He described it as a ‘big area of opportunity.’
He predicted international customers overseas would particularly welcome the chance to be able to talk with and see who they are speaking to on their screens.
Speaking for the first time since taking over as president of the association Mr Reid said: ‘Let’s be honest, banking is changing radically.
‘The digital proposition over the next two to three years will I think change considerably.
‘The move is that people have got phones, and they want to use their phones to do basic banking now and things that you would traditionally go in the branch for, more and more customers are saying: ‘‘Put it on the phone, I want to get my balance immediately, I want to move money about’’.
‘There’s all these things that are starting to come out of digital and I guess, it’s no different to how many of us live and work nowadays.
‘So that will have an impact for sure on the future [of banking].’
But Mr Reid stressed that it was important customer choice was still there.
‘All we are doing in banking is making sure and looking at what customers need and what they want.
‘If we don’t do that then you will see that we will become stale in terms of what we can offer to customers.
‘Some customers prefer traditional methods of banking and some prefer the new methods and you will see in a lot of countries now that the technology is moving forward so quickly.’ Asked about the
continuing and topical problem of cyber crime and hacking attacks Mr Reid said: ‘This is something the banks take very seriously.’
But referring to the fact that around £1 billion of business was transacted online on the recent so-called ‘Black Friday’ he said online is something the customers were wanting.
‘We are developing new digital propositions in all the banks but importantly in the safest way we can.’
Mark Waterhouse, chief executive officer of Zurich Bank International, the previous president of the bankers association, pointed out that there is a separate committee at the association, looking at fraud.
He said: ‘We have been putting together a leaflet which we will be distributing around the island warning about some of the scams that go on.
‘And with advice about the ways people can protect their accounts.’
Mr Waterhouse agreed with Mr Reid that digital developments were fast moving and the banks were tasked with going along with what customers wanted.
Mr Reid said: ‘We have a 24 hour contact centre here at the Peveril Buildings with international customers around the world. So what might be 2am here will actually be a different time in Hong Kong or Australia.’
Mr Reid said that ‘when combating money laundering and fraud, one of the best ways we can improve the identifying of a customer remotely is if you can see them.
‘There are all sorts of opportunities. And we can certainly include the convenience of customers that cannot travel in and they could have access to this sort of service.’
Mr Reid said a number of the banks were thought to be operating similar pilot schemes where people can speak face to face with bank staff.
‘And I think the challenge is for us on the island, particularly with the regulators and the government, is how do you keep legislation up to date and ahead of changes’.
Asked if he thought this could mean another nail in the coffin for bank branches he replied: ‘Definitely not and ultimately the customers will decide on this. I think that’s the big shift.
‘Customers are driving things now. They vote with their feet.
‘There is clearly a demand for digital services but there is a demand also with people who want to go into the branch.
‘It’s just as important. I think the important part is how you actually get all this to work together and make it feel for the customer, a seamless experience’.
Mr Reid said the Isle of Man has built a ‘really solid reputation’ in the world.
He agreed that in many ways the island was more transparent than many other jurisdictions.
And he stressed that the banks are as concerned for the wellbeing of all their customers and not just high net worth individuals.
The Isle of Man Bankers Association is the trade association of the banking industry in the Isle of Man.
Membership is open to and encouraged for all licensed banking institutions in the island.
The current membership of licensed financial institutions is drawn from a spectrum of banks in the island including clearing banks, building societies, private banks and trust banking operations.