IBM and Bank of China usher in era of smart retail banking
Published November 05, 2014
NEWS BRIEF--Bank of China Tianjin Branch and IBM announced the bank’s first smart branch, a digitized, virtualized retail location designed to provide a new form of customer experience through the use of big data and analytics, mobile, and social business tools.
A long-term partner of BOC, IBM provided the bank with industry insight and consulting guidance to help create the branch. As one of the leaders in China’s banking sector, BOC hopes to deliver transformational services that tap big data and innovative channels to create new, more personalized customer experiences.
The effort is yet another milestone in IBM’s ventures in both banking and the Asia-Pacific cultural realm. IBM recently announced a collaboration with South Korea’s Busan Bank to develop a mobile baking solution.
The move also continues a trend in banking that modernizes the retail financial markets. For consumers, personal finance is the area of life in which people most frequently interact with the newest concepts in IT and business. Likewise, companies around the world are presenting their own interpretations of the “smart bank” idea.
Kuwaiti firm Burgan Bank just announced a smart branch at the Avenues Mall in Kuwait City. The location includes video conferencing with call center agents and video walls of interactive touch screens. Citibank markets its Smart Banking service. The Bank of Beirut offers an automated retail experience, where customers can conduct a range of transactions from transfers to college tuition payments.
The realization of this BOC smart branch concept shows the enthusiasm banks have for technology as an advantage in the key area of customer service.
“The completion of our flagship smart branch further illustrates BOC's dedication to continuous transformation to best meet the needs of our customers, and this is just the beginning,” said Sun Huimin, President Assistant of Tianjin Branch of BOC. “Looking ahead, we plan to capitalize on digital and other innovative technologies to strengthen all of our customer-facing channels and their ability to deliver clients a personalized experience.”
“Consumers worldwide expect a new level of service whenever they interact with a brand, whether it be a retail store or a bank,” said Ron Lefferts, FSS leader, GBS, IBM Greater China Grou. “BOC’s new smart branch applies forward-looking insights gained from big data and analytics—as well as social and mobile technologies—to quickly respond to changing customer needs, giving BOC a distinct competitive advantage.”
The new Smart Branch incorporates many technologies and approaches. The branch features a sales area where customers can freely experience the bank's services and products through various terminals, including one for mobile banking.
BOC will capture anonymous user behavior from all interactive media in the branch and analyze it for client insight. A better understanding of customer behavior will help the bank make changes that respond to customer preferences.
BOC customers can carry out real-time communications with a remote bank teller for standardized transactions. This allows BOC to complete a greater volume of financial transactions, significantly improving efficiency for both the bank and its customers.
Customers can purchase services or get additional information through an interactive QR code wall at the branch. They can also share service QR codes with friends on social networks to make digital recommendations.