15:39, 24 October 2019 Page views 2884 views

Alfa-Bank: phygital as key trend

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125136e9-b0b2-4773-9e15-405c2d94166a.jpeg__1544515262__40675__vid450983e.jpegThe combination of live and digital (phygital: physical + digital) is the key line of the banking sector development, said Alfa Bank CEO Vladimir Verkhoshinsky speaking at the Finopolis Forum.

Following the trend, Alfa-Bank intends to turn all its branches into “phygital” offices within 3-5 years. A special system will use a smartphone geo-location and facial biometrics to recognize the personality and needs of the client entering the office doors. According to V. Verkhoshinsky, this will be an absolutely new case for the domestic market.

The information captured will be displayed on the tablet or PC of the employee who will see the client’s profile and services that would suit him/her. Biometrics can be used to approve transactions.

After completion of testing in mid-2020, the new concept will be gradually rolled out within the whole network. Up to 20% of branches will be reinvented by the end of 2021 to cover all of them by 2022–2024. The cost of re-equipping the branches under the new concept will be comparable to the bank's current repair costs.

The most expensive component of this process is technology; the annual cost of client recognition front-CRM is estimated at several million US dollars, said V. Verkhoshinsky.