However, the booming development of financial technology and profound changes in customer behavior have led to huge changes in the functions and services of bank branches. The cost of outlets is high, management is difficult, and the marginal benefits of outlets are diminishing.

Introduction Read

"Multiple points and a wide range of services" was once the advantage of Rural Commercial Bank in the competition in the same industry. However, the vigorous development of financial technology and profound changes in customer behavior have led to huge changes in the functions and services of bank branches. The cost of outlets is high, management is difficult, and the marginal benefits of outlets are diminishing. However, it has become a consensus in the industry that outlets will not be completely replaced. Therefore, it is urgent to transform outlets into customer- and service-oriented outlets.

"2022 Rural Commercial Bank Transformation Trend Report" (click to view details)

believes that the branch transformation of rural commercial banks involves the coexistence of "involution" and cross-sector competition among peers, inaccurate branch layout, single customer acquisition method, weak branch customer experience, and mismatch between hard power technology empowerment and soft power business model innovation.

The "Report" points out that in order to increase the production capacity of outlets, rural commercial banks should make efforts in the aspects of digital transformation, outlet services, customer experience, refined management, etc., and create customer-centered "marketing + service" dual-driven outlets.

Author丨China Cooperation Times reporter Ma Yue

"Multiple points and a wide range of services" used to be the advantage of rural commercial banks in the competition among peers. However, the booming development of financial technology and profound changes in customer behavior have led to huge changes in the functions and services of bank branches. The cost of outlets is high, management is difficult, and the marginal benefits of outlets are diminishing. However, it has become a consensus in the industry that outlets will not be completely replaced. Therefore, the transformation of outlets to be customer- and service-oriented is urgent.

Face the pain points

The problems of branch transformation need to be solved

How can rural commercial banks survive and live well in the cruel "war for survival"? Only by facing the pain points can we find a breakthrough and find a path of branch transformation suitable for the development of rural commercial banks.

(1) Peer industry "involution" and cross-sector competition coexist

Under the wave of digital transformation, the process of reshaping the banking industry is accelerating. Major banks, joint-stock banks, and city commercial banks are accelerating the pace of migrating resources and services to online channels. At the same time, they are making rapid progress in branch operation upgrades and service upgrades. For rural commercial banks, increasing horizontal competition pressure, Internet financial institutions squeezing the market, and changes in customer needs have prompted them to accelerate the change of concepts and embrace branch transformation.

(2) The layout of the outlets is not accurate enough, and the customer acquisition method is single.

First, the layout of the outlets is not accurate enough, and it cannot effectively match the local economic development. Some regions promote the construction of new urban areas through the establishment of new economic development zones, industrial parks, etc., to transfer and relieve the population and industries in old urban areas, resulting in a shift in the focus of regional economic and social development. However, some rural and commercial banks failed to proactively adjust and optimize their outlet layout in response to the shift in economic focus, thus missing development opportunities.

Secondly, the financial services provided by the outlets are relatively simple. is subject to shortcomings in product research and development capabilities. Some rural commercial bank outlets can only provide basic financial services, and their products and business models are relatively single, resulting in the outlets being less attractive to customers. For example, although middle-aged and elderly customers account for a relatively high proportion, most rural commercial banks currently lack targeted financial products and services for such customers.

(3) The customer experience of outlets is not strong

First, the business functions of outlets are highly standardized, have overlapping functions, and lack differentiation. Unclear service positioning has led to the homogeneity of the service models of some rural commercial banks and weak customer experience. Personalized services and the ability to handle complex business need to be improved. Therefore, outlets urgently need to promote "service model reset" according to local conditions.

Secondly, the technological transformation of branches has become increasingly prominent in terms of being unfriendly to elderly customers. With the popularization of intelligent equipment, more and more basic services are being diverted to self-service equipment. Many elderly customers are not good at self-service operations and are prone to resistance.

(4) There is a mismatch between hard power technology empowerment and soft power business model innovation

In the process of branch transformation, hard power and soft power should be highly complementary and can be transformed to a certain extent. It is a process of mutual promotion and interaction.However, while the widespread application of intelligent equipment has provided convenience for customers to handle business, the operating model of rural commercial banks has not innovated accordingly and still uses the traditional business model, causing some outlets to present a dilemma where the machines are efficient but the personalized customized services are not matched.

Improve production capacity

Path selection for branch transformation

has entered a new stage of development. The branch transformation of rural commercial banks is no longer limited to the physical attributes and hardware upgrades of the branches, but further accelerates the functional transformation of the branches. In line with the branch management philosophy of the new era, creates customer-centered "marketing + service" dual-driven branches with the purpose of increasing production capacity.

For rural commercial banks, in order to improve the core competitiveness of their outlets, they should make further efforts in digital transformation, outlet services, customer experience, and refined management to achieve "four improvements."

(1) Improving the level of digital transformation

In recent years, there has been a significant trend of migrating financial services to digital channels. However, making halls smart is not a simple matter of placing self-service machines, but requires strong process reshaping and design capabilities, starting from collaboration, diversion and scenario-based services inside and outside the counter, connecting service processes, coordinating the deployment of operational service resources, and optimizing customer diversion. Rural commercial banks' should focus on the goals of "excellent experience, reduced height cabinets, and intelligence", while should focus on the intelligentization of branch business management, configure smart counters, quick windows, and intelligent hall management equipment, while distinguishing new, updated, and existing branches, based on the actual situation of the branch, and carry out targeted intelligent transformation of the halls.

First, use digital recognition technology to achieve "intelligent perception". should use digital means to better identify customers and needs, provide customers with considerate services, and explore marketing opportunities at the same time. For example, the smart lobby built by Zhejiang Huangyan Rural Commercial Bank uses system identification, mobile Internet technology and big data modeling. not only accurately identifies customers, but also presents and matches 360° customer portraits with customer behaviors, risks, recommended businesses, etc. in a tagged form and pushes them to the lobby manager for precise marketing, striving to achieve "30 seconds of diversion, 3 minutes of marketing."

Secondly, smart counter functions should be continuously developed. focuses on functions such as account services, deposit management, credit cards, agency business, cross-border finance, life services, and corporate business, and ultimately achieves full coverage of over-the-counter personal high-frequency business and some corporate business. For example, Zhejiang Hangzhou Yuhang Rural Commercial Bank Cangqian Branch has continuously enriched its online services by setting up self-service terminals and to provide passbook registration, account inquiries, transfers and remittances, payment of electricity bills, phone bills, traffic fines and confiscations, purchase and inquiry of financial products, citizen card electronic wallets, electronic account recharges, and citizen card social security withholding contracts. Compared with counter processing time for similar businesses, the self-service processing time at the smart counter has been significantly shortened, significantly improving the efficiency of hall business processing.

Third, create a “small but excellent” mobile bank. In terms of the development positioning of mobile banking, rural commercial banks should not pursue "big but comprehensive" but should follow "small but excellent", optimize mobile banking functions based on the bank's operating characteristics and local financial demand characteristics, form characteristics in segmented fields, and achieve differentiated competition with large banks. For example, can create large-print version, voice version, and simple version of mobile banking services for elderly customers. integrates functions such as social security payment, medical services , and living payment in mobile banking.

Fourth, promote the integration of online channels and offline channels . Combined with the actual local economic and social development, build a business scenario that coordinates online and offline channels to improve the availability and convenience of financial services. Among them, online channels mainly focus on standardized financial products and services, while offline channels focus on personalized financial products and services, achieving complementarity between online and offline channels. It should be pointed out that the branch transformation of rural commercial banks should not unilaterally pursue digitalization too quickly. Different banks should adopt differentiated digital transformation strategies based on their own conditions and local financial demand characteristics. Different branches of the same bank should also formulate different types of digital transformation plans based on actual conditions.

(2) Improve the ecology of "financial + non-financial" services

services. Rural commercial banks should make full use of the functions of branches, rely on branches to create an "ecosystem", integrate into customers' life scenes, and enhance the financial service experience of branches. For example, in order to extend the service function of the hall and create a "ten-minute convenient service circle", Shandong Shouguang Rural Commercial Bank has built a "Wei Ni Ban" financial service station to provide corporate and individual customers with "one-stop" government services including business, social security, medical insurance, taxation, and credit reporting, as well as account opening, payment settlement, collection and payment, and credit funds and other financial services. It has gradually improved the "smart + government affairs" business structure and greatly improved the quality and efficiency of government banking services. For another example, in order to broaden convenience service channels and enrich hall service content, Rizhao Donggang Rural Commercial Bank has further strengthened police-bank cooperation and set up "traffic management service stations" at 12 business outlets within its jurisdiction. The business hall is equipped with special areas, dedicated personnel, counters and dedicated lines, which can handle small car registration, motorcycle registration, mortgage registration, driver's license expiration, loss, damage and other related services for customers. It effectively saves customers’ time in queuing at the vehicle management office, allowing the public to truly experience the convenience and efficiency of the service.

service specialization. Providing professional services such as financial advisory services to customers based on their financial consumption needs and behavioral changes is an important direction in the transformation of rural commercial banks' outlets. Not only that, professional outlets should be built based on the economic characteristics and customer characteristics of the area where the outlets are located to serve specific customers. For example, the Yucun Green Branch of Zhejiang Anji Rural Commercial Bank, which is located in the birthplace of the concept of "green waters and lush mountains are valuable assets", actively responded to the national "carbon neutrality" goal and built the country's first "carbon neutral" pilot branch for local corporate financial institutions. Anji Rural Commercial Bank focuses on the field of "bamboo carbon sequestration" and has established a full-chain service system integrating "forest land transfer - carbon sequestration collection and storage - base management - platform transactions - income feedback". Based on the production, collection, storage and trading of bamboo forest carbon sequestration, innovatively launched the "bamboo forest carbon sequestration" series of credit products . leveraged the green innovative development of the entire bamboo industry and promoted the "rebirth" of bamboo forests. The bank organically combines the quality and increase of bamboo forest management with the creation of income and wealth. It not only plays an active role in environmental carbon emission reduction, but also forms a major demonstration effect in the "transformation of the two mountains" and the common prosperity of the environment, providing a "Anji Anji enterprise sample" for the development of the bamboo forest carbon sequestration industry across the country and even the world.

service integration. As offline physical locations, rural commercial bank outlets have transformed from transaction operations to marketing services and become an important carrier of comprehensive customer services. Branches not only provide financial services, but also become an important channel for banks to promote their products and services and enhance their brand image. For example, in order to provide convenient comprehensive financial services, rural commercial banks within the jurisdiction of Zhejiang Rural Commercial United Bank have launched a five-in-one "finance, e-commerce, logistics, people's livelihood, and government services" on the basis of more than 20,000 financial convenience service points. With the "Harvest Station" service model, has built offline intelligent service channels and an online comprehensive service ecosystem. Together with nearly 4,200 business outlets across the province, they form a service network that covers every town and town in the province, as well as most administrative villages and urban communities. Currently, there are 11,000 "Harvest Stations" providing customers with more than 100 comprehensive services such as small deposits and withdrawals, loan management, utility bill payment, medical insurance deposits, provident fund withdrawals, administrative approvals, logistics services, and people's livelihood services.

For another example, Jinan Rural Commercial Bank focuses on building rural financial service stations and inclusive finance publicity stations, optimizing and building a 789-person team of rural financial staff and 190 inclusive finance publicity stations. covers all villages and major communities within its jurisdiction, including 78 high-quality "two stations" built based on site construction, marketing performance, and activity development. The "two stations" have a variety of financial functions, allowing people to handle business without leaving the village and enjoy high-quality and efficient financial services at their doorsteps.At the same time, it has also introduced volunteer services, cross-industry alliances, , etc., regularly held chess and card competitions, square dancing competitions and other activities that residents love to see, carried out nearly 12,000 convenience services and volunteer activities of various types every year, and handled nearly 1.6 million accounting transactions for residents, building an "ecological service circle" around the people and opening up the "last mile" of financial services.

(3) Improve customer service experience

optimize the service environment. reorganizes the existing branch service venues and optimizes the spatial layout, cultural display, process flow, etc. to make customers feel convenient, comfortable and elegant, and to increase customers' interest in experiencing banking services at branches. For example, Fuzhou Rural Commercial Bank Sanfang Qixiang Branch (Qipao Bank) is located in the historical and cultural district of Fuzhou. Not only does it have an elegant and fresh environment, it also has a dazzling array of books, as well as rich and fragrant coffee and small and exquisite desserts. Staff in Sanfang Qixiang branch wearing cheongsam cordially provide financial services to customers. The outlets, filled with a strong artistic atmosphere, have become a popular “check-in” place for tourists and young people.

promotes heart-warming services. 's standardized services of "a smile within three meters and a greeting within one meter" and attentive and considerate services such as "a cup of tea, an umbrella, and a support" are necessary regulations for rural commercial banks. To create a "warm bank", we must promote the deepening and improvement of "standard services - warm services - professional services" so that customers can enjoy warm, warm and comfortable services and care when entering the branch.

promotes convenient services. Targeting the behavioral habits and financial needs of special groups, especially elderly customers, rural commercial banks should optimize traditional service channels, provide differentiated services such as green channels, mobile services, door-to-door services, implement age-appropriate transformations of mobile banking, online banking, remote banking, and smart devices, and continuously improve the level of financial service facilitation for special groups. For example, Guangxi Luzhai Rural Commercial Bank Chengnan Branch has carried out aging-friendly renovation of its branches and divided the service area into an elder-respecting call center, an elder-friendly health area, an elder-friendly public welfare area, a public education area and an elder-respecting and caring service area. Among them, the theme of the charity area for loving the elderly is "I will claim your wish". Together with the Red Cross Society of Luzhai County, a charity donation box was added. Elderly customers can write " micro wishes " and paste it on the wall. Branch employees will claim it and help plan and implement it, building a bridge to help the elderly and love the elderly. For some special customers such as elderly veterans, retirees, and left-behind elderly people in rural areas who are unable to reach the scene, we provide them with telephone appointment and door-to-door services to solve practical difficulties.

improves personalized services. focuses on the customer groups around the outlets, analyzes the intersection of characteristics of surrounding high-frequency merchants and customer groups, focuses on wealth management, personal loans and other businesses, as well as groups such as "women", "maternal and infant" and "specialty industries", and conducts targeted group marketing to create exclusive and characteristic outlets that serve key businesses or key customer groups, gradually forming a siphon effect and competitive advantage. Shandong Qingzhou Rural Commercial Bank's Flower Theme Bank innovatively launched a series of "Flower Loan" products. Through joint party building with the Qingzhou Flower Association and relying on the industry chain to carry out marketing, enabled the Flower Theme Bank to reach out to the entire flower industry customer base. At present, there are 4,891 new agricultural business entities in the flower industry in the city, with credit coverage reaching 70%; approximately 150,000 employees, credit coverage approaching 100%, and credit coverage exceeding 45%. Coincidentally, Yuncheng Rural Commercial Bank's Golden Waterfront Branch focuses on the "Flower Bank" brand to accurately serve high-net-worth customer groups within its jurisdiction. The bank continues to invite flower business owners to settle in the business hall, reasonably divide the flower business areas, attract new customers and maintain old customers through flower sales. Flower arrangement and flower cultivation exhibitions, flower cultivation knowledge lectures and other activities are held regularly to provide a learning platform for flower lovers. Work with flower business owners to formulate marketing plans, provide bank customers with discounts on flower purchases, and provide flower shop customers with priority financial business services to achieve the goals of customer resource sharing, mutual business recommendations, and common profits.

(4) Improve the level of refined management of outlets

Outlet transformation is a systematic project. Rural commercial banks should regard outlet transformation as an integral part of the overall transformation and development strategy, and coordinate and establish a sound organizational guarantee system for outlet transformation.

optimizes the allocation of human resources in outlets and establishes a comprehensive position system for outlets integrating marketing services. can follow the principle of "standard quantification and on-demand allocation" and reasonably allocate corresponding position personnel according to the business scale and development positioning of the outlet, the number and structure of customers, physical partitions, etc. supplements front-end marketing service personnel through job integration, flexible employment and other means. Improve the comprehensive service capabilities of branch employees. follows the principle of "optimizing the structure and specializing in multiple abilities" to build the capacity of branch employees. encourages branch staff in non-marketing positions to take qualification examinations for account managers, financial consultants and other positions, and establishes a rotational learning mechanism to improve the comprehensive quality and business capabilities of branch personnel. Establish a new lobby service team. strengthens service team building in accordance with the principle of "full employee identification and collaborative marketing", and realizes the transformation of outlets from "individual operations" to "team collaboration". According to the passenger flow situation, the lobby service team personnel will be reasonably arranged and deployed in a timely manner to promote the implementation of the "fixed positions and variable roles" model. Effectively improve labor productivity. Release human resources through business outsourcing, use technological means and outsourcing collaboration to reduce employees' repetitive and low-efficiency labor work, and increase the time investment of branch personnel in high value-added services; through intensive business management, the transactional work of branches is centralized, and logistics intensification is implemented to reduce the burden on branches.

has improved the assessment and evaluation mechanism, and improved the job performance assessment and salary distribution system. promotes three-dimensional evaluation of website assessments. In terms of categories, we promote the grouping and classification assessment of outlets based on factors such as outlet operation scale, business structure, and development potential, refine the reference system, and achieve group competition and common improvement. In terms of business, based on the resource endowments of different outlets, we will refine the evaluation system for key business expansion, so that different outlets focus on different businesses, give full play to their own advantages, and enhance market competitiveness. Promote salary resources to further tilt towards the grassroots. We will improve the salary-increasing policies for grassroots employees such as subsidies for new outlets and differentiated allowances, promote salary benefits, labor protection and other resources to be tilted towards grassroots front-line employees, improve the salary and welfare benefits of grassroots employees, and enhance the sense of gain of outlet employees. For example, Inner Mongolia Dongwu Banner Rural Credit Union has revised its performance appraisal methods, abolished the pricing system for claiming personal deposits, and significantly reduced the weight of assessments such as counter business volume. has also introduced separate customer account management and branch staff KCI behavioral management. Management and other related systems, established a hall service marketing assessment system that is dominated by machine conversion rate, product referral rate, and product marketing performance. It closely integrates the annual strategic goals of the association with the performance indicators of outlets and the personal performance of employees, effectively stimulating the endogenous motivation of all employees to participate in outlet transformation.

standardizes the performance of duties by the outlet management team and builds a standardized management system for the outlet. clarifies the duty performance list of the outlet management team, standardizes duty performance behavior, and forms an institutionalized and systematic management model. Establish an HTML marketing management system with division of labor and coordination and hierarchical services, establish a leadership team management and decision-making system with division of labor, collaboration, and democratic centralization, establish an outlet meeting system and standardize meeting rules of procedure, and establish an employee assessment and training system with positive incentives and striving for excellence.

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Source/China Cooperation Times·Rural Finance

Supervisor/Cai Liang Editor/Ma Yue Producer/Lv Guowang