The challenge of divergent paths.

• Author: Motley, L. Biff
• Position: CUSTOMER SATISFACTION

TWO MAJOR TRENDS ARE CONSPIRING to fundamentally change the way financial services are conceived and delivered in our society.

First, Americans are older and living longer. And those who are affluent are even richer than prior generations.

Second, information technology is evolving rapidly and is altering the idea that branch locational convenience is the primary strategy for capturing and serving local markets. This is not to say branches are no longer relevant, just that their role is changing. No longer are people visiting their branches daily to deposit checks, get cash, or other required operational tasks. These can now be done in an anytime, online self-service mode.

What's worrisome, though, is that these highly desired, time-flexible self-service technologies are largely undifferentiated. It's likely that your bank's remote check deposit service using an iPhone is pretty much identical to anybody else's. And the same can be said about the entire menu of online banking services that is evolving rapidly before our eyes.

This trend, however, as disruptive as it is to our traditional location-based personal-service-centric business model, is not entirely removing human beings from the competitive mix. On the contrary, some say it is liberating our bankers from mundane tasks so that they may provide truly valuable services to customers who really need and can pay for them.

High-value personal services

For example, banks with active trust departments are often setting up special eldercare services for selected clients. These are high-value services that help the next generation care for loved ones and cement long-term banking relationships.

Understanding the intricacies and costs associated with the need for elder care as aging parents evolve from one set of needs to the next can be a daunting burden. But a specialist at your bank who knows the ropes can make it much easier for your valued clients.

Other examples of initiatives financial institutions have used to reposition their focus on high-value personal services include:

* Specialized insurance services for high net worth clients (BB&T).

* Helping clients negotiate the...