Retail banks may be reducing the number of branches, but they all agree: the physical sales network remains a key element in providing customer service. "In the same way as online services and telephone advice", said Bil. "There are issues, even on a day-to-day basis, that require face-to-face contact. We have to respond to them," said BGL BNP Paribas. "There are no plans to close any Post outlets," said Post Finance.
At Raiffeisen, the physical branch network "remains at the heart of the commercial strategy" and "remains [the] main distribution channel". As well as expanding its digital offering, the bank is investing in the development and optimisation of its points of contact in the country. At the beginning of May, it opened a new branch in Belval. "We are currently renovating our branches in Alzingen, Bertrange and Wiltz", a spokesperson stated.
While day-to-day transactions are migrating to online platforms, in branches customers are looking for personalised advice and specialised appointments. Raiffeisen is reflecting this trend. In addition to its "full-service branches", its physical network also includes "advice branches", such as the Hub of Home, a centre specialising in property projects. In addition to the branches, the bank has also just opened , centres of expertise dedicated to businesses.
The branches are first and foremost a showcase for the bank.
"Branches remain a fundamental pillar of our strategy," according to the state savings bank Spuerkeess. "Visible throughout the country, they are above all a showcase for the bank. They can be a growth driver, as long as they are welcoming places that are easily accessible by all means of transport and offer a competent service. This is our vision for the future of the physical branch network."
Spuerkeess said it plans to invest in transforming its infrastructure, which will be "more focused on private consultation spaces rather than traditional counters". It also wants to invest in human resources: "At present, our branches have 410 employees, but to achieve optimum service, we need to strengthen our teams. This is different from some of our competitors, who are cutting back on staff numbers.”
Spuerkeess aims to recruit several dozen account managers, professionals who will be on the front line welcoming and advising customers. The target will probably be to meet the influx of customers from ING. "It's not easy to find good sales staff at the moment, but we also hope to be able to recruit from among ING employees who are looking for new opportunities.”
Not everyone can work in a branch.
Finding the right talent is a major challenge, confirms , CEO of the Luxembourg Bankers’ Association (ABBL): "Working in a branch requires you to have the affinity and sensitivity to deal with people. It's also crucial to be fluent in several languages and to understand the Luxembourg context, particularly when it comes to issues as specific as mortgages. What's more, we're in direct competition with the state and local authorities for these talents.”
One positive point, however: "The risk of branch robberies has been drastically reduced because there is no longer any handling of cash in these places", Grbic noted. "This represents significant progress in terms of security for our employees. I started my career in a retail bank, at Bil, where I worked alongside colleagues who had been robbed. These experiences can leave their mark on people to varying degrees, but today this risk is virtually eliminated."
New branches to be opened
The future evolution of bank branch coverage will continue to reflect the increasing use of digital technologies, according to the ABBL. For Grbic, the question remains relevant: "Although their function is changing, some will continue to emerge, due to rising demographics and the emergence of new neighbourhoods. The added value of branch advice is increasing for important discussions such as investments or loans. Digital technology is certainly very easy to use, but human contact remains essential, particularly in terms of trust and local knowledge.”
Looking ahead to 2035, Grbic stated: "Even if the way we do business changes, there will still be banks and bankers. The 'last mile' in terms of customer service will remain essential. So branches are not going to disappear overnight: instead, they will adapt to the new demands of customers and technology."
Originally published in French by and translated for Delano