Convenient and Brick-Free: How technology changed banking.

• Author: Barbour, Tracy
• Position: FINANCE

Financial institutions have been consistently building up their virtual banking services to better accommodate their customers. Virtual banking--often referred to as online banking or electronic banking--is essentially the equivalent of traditional banking over the internet. It allows customers to access their account digitally 24/7 to transfer funds, pay bills, and apply for loans from the comfort of their home, office, or anywhere, really. And with the prevalence of smart devices, mobile banking is becoming an expected service among consumers.

A Hybrid Approach

Most financial institutions in Alaska use a hybrid model that blends traditional store-front operations with virtual or online components. That's exactly what's happening at First National Bank Alaska. Generally, customers expect and are migrating to digital service offerings. As a result, First National is investing in the "digital frontier," says Phil Griffin, executive vice president and chief information officer. However, the bank is also focused on enhancing its branches. "Even in the digital world, customers are using more mobile devices than traditional PCs," Griffin says. "So it is important to have mobile friendly digital offerings. Nevertheless, the brick-and-mortar branch is still alive and well. As an institution, we are evaluating different ways to enhance the branch experience."

Northrim Bank is taking a similar approach, augmenting its internet-based services in a number of ways. Examples include the enhancements made to its Business Online Banking product, the recent implementation of its Account Recon and Positive Pay product, and its Business Mobile app. However, it's not entirely clear how customers are leveraging these options. "We don't have good insight into whether our customers are working in virtual environments as our Business Online Banking services are compatible with both environments," says Katie Bates, senior vice president and director of electronic channels.

What is clear, Bates says, is that customers are steadily reaching for virtual services. Volumes in Northrim's electronic channels continue to increase, and the bank is working hard to ensure its electronic products and services allow commercial customers to self-serve when that option is best for their business. "We continue to offer and expand our branch network to support customers, as there are some businesses that need and like personal attention," she says.

KeyBank is also making enhancements in several areas. In anticipation of evolving banking preferences, KeyBank expanded and improved its online and mobile banking capabilities over the past several years. According to Alaska Market Leader Lori McCaffrey, the bank is providing clients with an easy-to-use, secure way to manage their money--whether it's by accessing their accounts via mobile or online, using Bill Pay or Zelle to schedule or make payments, or accessing the bank's HelloWallet financial wellness tool.

McCaffrey says KeyBank wants banking to be easy and for its clients to be able to bank when and how they choose. Offering a...