Pub. 9 2018 Issue 3

Fall 2018 15 West Virginia Banker M ost bankers understand how important customer engage- ment is, the importance that it plays in maintaining a successful business model and a healthy bottom line. The question then is how to stay engaged with all your customers when, like rotary phones, vinyl records, and typewriters, the use of conventional brick and mortar banks is losing favor. The functionality of all are still intact but practical application and usefulness are becoming antiquated. The answer, a different type of “mobile” banking. A mobile banking branch or branch on wheels gives an alternative to those customers who are unable or unwilling to conduct transactions via the internet. The idea of a bank branch on wheels is not a new concept - in fact the idea has been around for a while. Mobile branch- es have been increasing in usage both here in the US, and Canada, as well as the U.K and other countries. Banking on wheels has proven to be beneficial to both the bank and the customer in a variety of ways. Picture the factory worker, working a night shift who does not have direct deposit. The small business owner driving in rush hour traffic to make the daily deposit because they do not feel comfortable using remote deposit cap- ture. Or, the elderly with limited reliable transportation holding on to their social security check until they can go in per- son to deposit it. By being more than just a mobile ATM the branch on wheels can meet all their banking needs. Not only does the mobile branch increase convenience for your custom- ers it also offers free advertising to the bank. Driving around town with the bank’s logo covering the van replaces the static billboards used in traditional advertising. Not to mention that the still relatively new concept of a bank on wheels adds to the bank’s word of mouth marketing as pictures of the van go viral on social media. The mobile branch can also serve as community outreach to educate students about banking. How much easier and more effective would it be to drive the bank to the students instead of lecturing on how to open and use a checking account? Just like any new delivery channel, addressing security concerns for mobile banking takes the forefront. How do you manage cash and cash items, how do you ensure non-public personal information remains confidential, how do you maintain physical security for the mobile branch and most importantly its personnel? There are no clear-cut answers. For some financial institutions entering into partnership with armored truck services, already providing cash transportation seems to be the solution. In most instances, the armored truck service would provide the vehicle driver with cash management technology, and security, while the bank employees deal directly with the customers. If a strategic alliance with an armored truck service proves to be more costly than beneficial, the alternative is customi- zation. The mobile branch can be cus- tomized to include a number of security safeguards including dial up alarm systems that communicate over cellular or land lines, motion detectors, sirens, and ignition locks just to name a few. Financial Institutions cannot ignore the fact that “mobile” banking is here to stay and traditional branches are seeing less and less foot traffic. In fact, most banks offer a smart phone app that cus- tomers can use for convenience when performing routine transactions. A fully functioning mobile branch has been successful abroad and here in the US, but the idea is still new and poses many questions, and will never completely replace traditional branches. The mo- bile branch offers a union between the traditional brick and mortar banks and the new convenience is the king con- cept of banking. This means financial institutions can apply the technological advancements without giving up con- nection with the customers.  A Different “Mobile” Banking By Amber Blankenship Audit Manager, Arnett, Carbis, Toothman LLP Amber is a Manager in the Accounting and Auditing Department, serving within the Financial Institution Services Group. Amber has ten years of banking experience serving primarily as Internal Auditor conducting operational, financial, and compliance audits for community and regional banks in the Atlanta area before relocating to Charleston, West Virginia. She can be reached at (304) 346-0441 or by email at amber. blankenship@actcpas.com.