Banks are increasingly resorting to open plan layouts, touch screen displays, coffee bars and children's play centres in order to

Directions: Answer the given question based on the following passage.

It is likely that banks would put an end to their fixation with traditional way of interacting with customers. In many developed countries, the number of branches and branch usage has declined with the use of new technologies such as ATM (Automated Teller Machine), PTM (Personal Teller Machine) and other electronic channels. Personal Teller Machine uses video to connect to a bank employee in a remote call centre. With the availability of technology channels, banks recognise that customers have wider options in terms of accessing banking services wherever and whenever they desire.

 As a result, banks are attempting to differentiate in terms of superior customer service and the provision of new delivery channels. Alternate channels have impacted the usage of various products. As a result, the contribution of electronic products has increased in non-cash payments and settlement services. The study of non-cash payments like debit cards, online bill payments and automated clearing house payments, indicate that usage of non-cash payments depends on the infrastructure that is in place, end user education and user preferences. Despite the efforts to increase usage of electronic products, even in countries like Germany, 82 per cent of all transactions are still conducted in cash.

At a time when newer forms of electronic payments are present, banks are rediscovering branch networks. Even the pure internet players like ING Direct operate in small number of retail locations from where they can discuss matters with customers. Meanwhile, traditional brick and mortar institutions have invested heavily in digitization and technology. As a result, branch personnel are freed up for sales and advisory services. Banks are also investing in new interior design and interactive technology to encourage customers into branches after pushing them to use remote channels. For example, at Umpqua Bank free Umpqua branded coffee is offered and computer terminals are provided to surf the internet for better customer experience. Employees place a chocolate on a silver tray while presenting a bank receipt. The number of branches of the bank has increased from 5 in 1995 to 155 in 2006. These innovations are likely to make digital merchandising an essential tool for financial institutions. Banks are also learning from other industries like retailers to improve cross selling. Dynamic cubicles are placed in which customers can linger, browse and shop for new products, while employees are trained like retailers by offering on-boarding services. Priority is given to functionality over design, thus offering three methods to reduce waiting time which are central waiting points, queuing system and a decentralized waiting system. The intention is to serve 93 per cent of employees in 5 minutes. Branches have been designed with open plan layouts, touch screen displays, coffee bars and children’s play centres. The scheme has encouraged additional new retail customers to open accounts.