Seventeen years after his first bank job stamping carbon-copy deposit slips, Niehaus was named in June the new head of retail banking in charge of about 200 Fifth Third branches in the Cincinnati affiliate and western Pennsylvania. The Cincinnati division stretches from Northern Kentucky north to Lima.
So-called express branches debuted in downtown Cincinnati in 2013 and feature an online banking station, a touchscreen kiosk customers use to learn about mobile banking, online bill payment and Internet banking. Rather than counting cash, personal bankers answer customer questions about larger, non-routine transactions.
An office was converted and re-opened in August as an express branch on Brown Street in Dayton.
Technology and banking habits are rapidly changing, but even so, Niehaus said in this interview he doesn’t see technology replacing people. Nor does he see express branches replacing all other branch formats including those with queue lines. The challenge facing Fifth Third is to cater to the different ways customers want to interact with their bank.
Q: What’s the biggest change in retail banking since when you started to where it is now?
A: "I would tell you when I started, Fifth Third didn't even have email and I would tell you we got our results via fax.
“…And I would tell you everyone needed a checking account and everyone needed a loan. Those were the days we lived in.
“…It’s not about a deposit or a loan anymore, it’s about you and what you want and if we ask the right questions to you, we’re probably going to find that you have a need and then how do we satisfy it.
“…It really tells kind of the story of what we’re trying to do and be consultative…and we have email.”
Q: What are some of the latest branch innovations that we’ll see in the area?
A: "Currently we have three branches that we consider express models. Those would be branches where we have more technology in them than we do today.
“[Express branches have] ATMs that can disperse different denominations, can run deposits. What I can tell you is there are still employees there working with patrons. I still look at our branches as a pivotal part of our customer strategy. You can’t just go get rid of a full distribution link to your customer.
“A certain amount of people want the technology, they want the online banking, the online bill pay, mobile banking. Believe it or not, I never thought in my life I’d be taking pictures of checks and it was going to go into my checking account. I tell you that’s my favorite thing to do now.
“But when I moved back to get my mortgage, I still wanted to buy from an individual.
“I think when you look at one of the biggest changes, back when I was a (customer service representative), we were doing 21,000, 22,000 transactions a month (at a single branch) and people weren’t on direct deposit. I think over the last five years you’ve seen other companies upgrade their technologies and go to that direct deposit channel which means you’re not coming in and a lot of customers aren’t coming in with their checks. But when they are coming in, it’s different needs.”
Q: What are the most dramatic changes that you’re seeing?
A: "I think one of the biggest trends is really the mobile banking side which is then leading to obviously fewer transactions in the centers. I still look at the financial centers as a convenience point, but as folks get more and more comfortable with again, using mobile, using the Internet, you do see those transactions dropping. Then it becomes more if more clients are coming in for a need, whether it be a mortgage, a savings account, checking, whatever it might be, you probably need to staff a little differently and looking at more of a personal banker side to take care of more of the need-based selling."
Q: What’s next for retail banking for Fifth Third in the region?
A: "As far as the retail distribution channels, I think they'll continue to evolve. I don't think over the next five years or 10 years, we're going to see all of our centers go to an express model. We'll still cater to the different clients across the region."
Q: Do you think the check is going to go away? Do you think branches will go away?
A: "If you think about it, I'm coming from Indiana to here and one of the biggest reasons I'm coming here is because it's our headquarters. It's our legacy market. It's where our brand's most noticeable and it's most noticeable why? Because we're on a lot of corners. I think that's how we market ourselves."
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