by Joseph Kenny | 01/21/08

Some financial experts are now saying that the trend to create virtual banks was a mistake.
At the height of the Internet boom in the 1990s, some banks went ahead and shut down their bricks-and-mortar branches in favor of virtual shops along the World Wide Web.  The problem is that consumers favor stopping by a local bank branch, and they appreciate the customized service that a teller can provide.

As a result of this, some banks are opening up shop in neighborhoods once again.   However, now they're looking at finding ways to enhance the customer's experience.  Instead of simply offering consumers checking and savings accounts and certificates of deposit, banks are also peddling retirement planning and insurance policies.  In this way, they hope to add value to a customer's experience and, in turn, to enhance the banks' profit column.

Still, banks are not totally abandoning technology.  In fact, they're using it to sell additional services.  For instance, by scanning a bank card, a customer can be greeted by a personalized message on the wall.   A sales representative familiar with your financial situation may then try to sell you additional services.

The so-called "next generation branch" can also provide face recognition through automated teller machines, electronic pens for completing deposit slips, and a host of other high-tech amenities.

Still, the question remains:  Are these high-tech gadgets worth the cost and effort involved?  The answer all depends on whether those tools prove to be effective in merchandising services to customers.  If customers purchase additional services as a result of electronic amenities, they are obviously a fad that will quickly die out.

Yet, it's safe to say that banks are on the cutting-edge of technology use.  They are determined to use whatever high-tech means are available to sell their services to the general public.