Banking might be advancing into an age dominated by artificial intelligence, but there is one unshakable truth: humans and physical bank branches still play a central role. Innovations like digital-only banks and virtual assistants have undoubtedly captured immense attention, but they are not the end of the story. The hybrid approach, where both technology and personal interaction coexist, is proving to be the most effective way forward.
Why Physical and Human Elements Still Matter
Digital services offer speed and convenience, but for many, especially when dealing with complex or high-stakes financial situations such as mortgages, loans, or long-term investments, speaking with a human offers the reassurance that no machine can replicate. When emotions run high, that is, during major financial decisions, customers crave guidance from someone they can trust, not just an algorithm or bot.
According to Deloitte research, 82% of customers who had issues resolved via chatbots said they would not use the service again for similar situations; meanwhile, 46% stated they would prefer visiting a branch next time. That alone indicates a limitation in purely digital banking services.
From my own entrepreneurial experience, when you're dealing with matters involving trust, such as securing investments or overseeing company accounts, face-to-face interactions are crucial. A technology-driven approach helps, but it's never a true replacement for human advice, particularly in higher-stakes decisions.
Statistics That Back It Up
- 68% of customers still visit a bank branch at least once per month, according to a 2024 study on banking habits. Despite the digitization of finance, the human touch remains irreplaceable for millions.
- A report from McKinsey found that branches account for 65% of new product sales in the financial sector, demonstrating their lasting relevance.
- Research conducted by The Financial Brand revealed that during economic uncertainty, customers were 40% more likely to trust financial institutions with visible, local branches compared to those operating purely online.
What Banking’s Evolution Tells Us
That's not to say banking isn’t changing. Physical branches are adapting swiftly to complement the digital wave rather than fight it. This evolution leans toward creating hybrid spaces. Many banks, including global players like Santander and regional institutions like Citizens Bank, are redesigning their branches to focus on financial advocacy, housing smaller, more intimate spaces where personalized advice takes precedence over transactions.
For entrepreneurs, this can be a big lesson. Never chase technology for technology's sake. Instead, understand where digital channels amplify convenience and where personal, or human, interaction strengthens trust. The winning formula is balance. Firms that rely solely on automation and AI to cut costs frequently fail in competitive markets as they lose touch with their customer base.
How AI is Complementing Human Expertise
AI and machine learning bring undeniable benefits to banking. They manage data processing, fraud detection, credit scoring, and predictive analysis in ways humans would struggle to match in speed and accuracy. For example, JP Morgan's digital initiatives help customers process loan applications in seconds, not days.
However, where AI often hits a limit is personalization. Chatbots might assist you with simple, predictable questions, but will a bot pause when noticing the stress in your voice over the phone as you ask about managing debt? Not now, and perhaps not ever. Meanwhile, bank advisors, when freed from transactional responsibilities, can deepen their skills and focus on customer-centric services.
How Entrepreneurs Can Learn from Banking
Take these lessons about balance and trust into your own business, here is a guide to making sure both digital and human sides contribute effectively:
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Augment Don’t Replace Human Interaction
Automation is a tool to offload repetitive work. It’s not a substitute for people. Use tech to make your employees more available for complex tasks. -
Build Reassurance Points
Whether it's through direct customer service, a physical pop-up in a coworking space, or a phone consultation option, provide channels where people can connect with your team. -
Learn From Data, Act With Empathy
Digital tools will help you discover patterns or highlight urgent issues. But it’s empathy, as shown by real people, that can address these problems meaningfully. -
Redefine Physical Presence
You don’t need a massive office in today’s agile work world, but having presence where your customers congregate, perhaps during key events, is invaluable.
By thinking the way banks have begun thinking, we can create flexibility without losing sight of why customers show up in the first place: trust and human connection.
Common Pitfalls While Embracing Technology
Many organizations stumble when trying to implement a hybrid approach. Here are common missteps to avoid:
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Cutting Back on All-Sized Physical Locations Too Quickly
Downsizing appears to boost short-term profits but often costs long-term customer loyalty, especially without replacement face-to-face options. -
Dismissing Certain Customer Demographics
Automated solutions work well for younger customers but could alienate older, less tech-savvy groups. Don’t assume a general demand for “all-digital.” -
Deploying AI Without Empathy Calibration
Relying on robots to respond to nuanced questions can backfire, particularly in emotional life events like illness or financial hardship.
Lessons for Aspiring Business Owners
The future isn’t necessarily about which is better: humans or bots. It’s about whose roles need to shrink, and whose need to shift. In navigating the evolution of large institutions like banks, insights abound, the need for seamless collaboration, scaling technology while acknowledging human behavior, and the ability to keep consumers' confidence at the core of operations.
For banking innovators and founders alike, the takeaway is clear: give customers options. Whether online or offline, fast and frictionless systems must work in harmony with personal, empathetic service. Successful businesses in any sector will achieve that balance, showing commitment both to progress and to the people they serve.
FAQ
1. Why are physical branches still important in banking?
In high-stakes financial decisions like mortgages or loans, customers often prefer face-to-face interactions for trust and reassurance. Read why physical branches matter
2. How do customers view chatbots for banking inquiries?
According to Deloitte research, 82% of customers who used chatbots for resolving issues said they wouldn’t use them again for similar problems. Learn more from Deloitte Insights
3. What percentage of customers still visit banks?
A 2024 banking study revealed that 68% of customers visit their bank branches at least once a month. Discover banking trends from McKinsey
4. How do physical branches contribute to financial trust?
Research from The Financial Brand shows that during economic uncertainty, customers are 40% more likely to trust banks with local branches. Understand the role of branches
5. What role does AI play in modern banking?
AI enhances banking by providing services like loan processing and fraud detection, but it cannot replace the empathy and personalization of human advisors. Learn how banks use AI effectively
6. Why is a hybrid banking model considered beneficial?
Combining digital convenience with personal interaction ensures that banks meet various customer needs while building trust and handling complex transactions. Understand the hybrid model benefits
7. How are bank branches evolving to meet digital trends?
Banks like Santander and Citizens Bank are creating smaller, more intimate branches focused on financial advice rather than transactions. Explore how branches are adapting
8. What are the risks of relying entirely on digital banking?
Digital-only models risk losing less tech-savvy customers and may weaken trust during sensitive or complex financial discussions. Read about risks of digital-only models
9. How can AI and human collaboration improve banking?
AI is effective for repetitive tasks and data analysis, while humans excel in empathy and handling complex or stressful situations. Discover the balance between AI and humans
10. What lessons can entrepreneurs learn from banking's evolution?
Entrepreneurs should focus on balancing automation with personal interactions to build trust and meet diverse customer needs. Learn entrepreneurial takeaways from banking
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
