In the digital age, where most actions are performed through applications rather than branches, many banks have forgotten that banking is about people. What about customers who need personal guidance or answers from a banker? Fortunately, some banks remember that technology is meant to strengthen the connection with the banker, not replace them.
The banking world has been undergoing a real technological transformation in recent years. Most banks have already migrated a significant portion of their operations to digital platforms, allowing customers to perform almost any action via self-service—on the website or app—thereby saving the trip to a branch.
This transition to digital has undoubtedly made life easier for many customers. However, it also comes with a price.
Prior to the digital era, bank customers—especially those with variable income or going through periods of change—often relied on a personal connection with their banker. If a problem arose, if money was delayed in reaching the account, or when the overdraft grew along with anxiety, they could call their banker at the branch—someone who knew them, their checking account status, and their financial history—and work together to resolve matters at their convenience. Today, in such situations, customers will find it difficult to find someone at the bank to work with directly.
A Call Center Banker Is Not a Lifeline
Today, most banking operations are carried out via self-service by the customer. Beyond basic actions like withdrawing cash or depositing checks, which have been done at automated machines for years, bank customers are now asked to independently manage loan applications, bill payments, deposit management, and more via the website or app.
But what happens when a customer seeks to perform more complex or sophisticated operations? What happens when a customer feels the need to speak with their banker to clarify their situation—for example, to explain that funds are expected to arrive in the coming days? In such cases, at most major banks today, customers are required to have great patience and endure longer-than-usual waiting times.
The reason for this is that most banks no longer allow direct communication with a personal banker. As an alternative to a direct line to the branch, customers are directed to centralized service call centers. While a banker sits on the other end of the line, it is not the permanent banker from the branch who previously took direct calls from the customer, but a random representative who does not know the customer, their personal needs, or their business.
That phone banker does not know whether an issue is recurring or a one-time occurrence, how similar situations were resolved in the past, or even the extent to which the customer typically fulfills their obligations to the bank. To understand that account holder’s history, the representative must study it from the beginning—not something that can be accomplished in a single short phone call.
Digital Is Not a Replacement for a Banker
There are essentially two different approaches to digital banking:
The fully automated approach: Holds that the world is moving entirely to digital, and habits change quickly. According to this view, in a few years, people will no longer visit branches—if any still exist—and will not know their bankers. Applications, bots, and other technological means will replace human banking service.
The human-centric approach: Holds that at the end of the day, banking is about people, and there is no substitute for human interaction with a professional banker. This view maintains that when it comes to the things that truly matter, humanity cannot be replaced. Under this approach, advanced technology and sophisticated digital tools should be utilized to simplify the interaction between customer and banker, rather than minimizing their encounters as much as possible. This way, if a customer wants to explain or request something from their branch, they can do so.
In practice, there is no reason for the digital revolution in banking service to come at the customer’s expense. Banks must understand that technologies like phone, SMS, and email are excellent tools that can enable direct communication with the branch banker, which is often of critical importance.
Digital banking undoubtedly saves time and makes life easier for many customers. However, as most bank account holders in Israel know, banking is built on trust, and there is no substitute for a listening ear from a banker who knows the customer and is willing to help.
It seems that the rapid transition to digital has made some banks forget this simple truth, leaving their customers unable to phone the branch to provide updates or solve a problem, which can harm the quality of service they receive.
Some banks are already using technological means to reinforce the bond between customer and bank, enabling direct email correspondence with personal bankers, for example. Unfortunately, some charge an additional monthly fee for this service.
Banks are also closing dozens of traditional branches nationwide while simultaneously opening impeccably designed digital concept branches—though it remains unclear whether customers will find real utility in them.
Against the backdrop of this digital frenzy sweeping across local banks, those that stand out are the ones utilizing digital tools and innovation to enable customers to communicate directly with their personal banker and branch team in a fast, secure manner.
Mizrahi-Tefahot is one of these banks; through technological developments, the connection with the banker is preserved and made even more accessible and convenient.
This is likely where the future of banking in the digital age lies: advanced technological tools alongside immediate access to a banker when needed. Only in this way will the customers themselves be the ones to truly benefit from the new era in banking.
A Video Teller Machine (VTM) represents a true “digital bank branch” solution, utilizing video technology to combine the advantages of direct self-service while providing a banking experience for all segments of the population—especially end customers who struggle with high technology. This technology enables a seamless combination of self-service and human teller service.
