Banking giant HSBC is testing an electronic queueing system in 20 of its refurbished branches to reduce customer waiting times and provide more effective customer service.
The centrally managed system dispenses tickets to customers as they enter a branch and asks them to request a specific type of service, which triggers an alert to an appropriate staff member carrying a pager.
‘The system makes the running of the branch more efficient and gives managers more control because they can programme the system at the beginning of the day to assign various staff to specific services,’ said a spokesman for HSBC.
‘And it is good for customers because when they take a ticket they are told how long they will have to wait,’ he said.
The queueing system is one of a range of automation technologies the company is testing in the run-up to opening a flagship branch the size of a small supermarket in central London in 2007. The megastore will also test radio frequency identification-enabled bank cards and tablet computer mobile workstations.
HSBC is one of a number of banks investing in technologies to automate routine transactions, according to a report released last week by researcher the Economist Intelligence Unit.
‘The research shows a trend towards automating simple transactions such as statements, leaving staff to advise on more complex products such as loans,’ said report editor James Watson.
‘Banks are automating as much as they can before the customer enters a branch so they can concentrate on selling.
‘There is a parallel with the airline industry where customers can buy, book and print tickets online, so that when they arrive at the airport they are pre-checked-in,’ he said.
The trend towards automation is not new, but is gathering pace, says Forrester Research senior analyst Benjamin Ensor.
‘Automation improves the customer experience, but more cynically it gives banks the opportunity to cut costs,’ said Ensor.
‘But they are not trying to get rid of all branch staff because it is hard to sell complex life insurance and pensions without speaking to someone,’ he said.
Providing customers with electronic self-service options is valuable, but can go too far, says Gartner analyst Mark Raskino.
‘Eliminating person-to-person contact with too much automation is going too far in many circumstances,’ said Raskino.
‘There is nothing to gain by throwing the next generation of technology at the same problem when you have already automated out 80 per cent of the people from the process.
‘Further automation may have diminishing or possibly negative returns,’ he said.
With more sophisticated modern technology systems, the next generation of automation is likely to focus on carrying out higher-value knowledge work rather than administrative tasks, according to Raskino.
Automation... in 30 seconds
* More than 70 per cent of bank staff surveyed by the Economist Intelligence Unit said their firms prioritise self-service, enabling more staff to sell products.
* As well as more cash machines and self-service kiosks, seven out of 10 banks already have or plan to install customer relationship management tools such as text message banking.
* Airlines are also heavily investing in automation of customer transactions. British Airway’s (BA’s) technology investment was key to a 25 per cent rise in annual operating profits. One in 10 BA passengers books flights and checks in online, and six per cent use online boarding passes.
* Initiatives such as e-ticketing, online check-in and automated passenger data collection brought significant savings for airline BMI. The e-ticketing project saved £34m in its first year and was followed by online check-in facilities and increased automation of engineering and procurement processes.
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