We have long reported on the downward trend of bank branches, with 80,000 branches closing from 2008 to 2023 in the EU alone. The reaction for many has been to name it the “death of branch banking.”

This, however, is looking increasingly unlikely. The Swiss-based Valiant Bank, which offers retail banking services for private individuals and SMEs, understood that the dominance of online banking required a focus on branch optimisation rather than indiscriminate closures. 

What is more, their most recent report on the results of their 2020–2024 branch modernisation strategy proves that their approach is working.

Valiant Bank report findings

The report found that “domestic growth was moderate, but below the long-term average.” This also reflects the substantial challenges Swiss financial institutions face, with a 2024 EU report citing “high regulatory costs; shrinking margins; price-sensitive customers; restricted access to foreign markets; rising competition from both financial and non-financial actors” as specific challenges in Switzerland.

Even with the competitive landscape, the banking industry in Switzerland remains in “good shape,” with Valiant achieving a 4.2% consolidated profit increase with CHF 150.4 million. The profit is as a result of strong figures across the board, including CHF 30.2 billion in loans to customers, CHF 22.4 billion in customer deposits, and an operating income of CHF 551.7 m, which represents an increase of 1.1%.

All this means that Valiant closed 2024 with “the strongest operating result since it was founded.” 

Bank branch expansion strategy

The holistic strategic approach that Valiant took to achieve these results included some surprising elements, given the context of decreasing bank branch locations across the EU. We can trace the origins of this strategic approach to 2014–2017, when the bank noticed a 35% decrease in the number of personal assisted financial transactions. Like other financial institutions, the knock-on effects included a reduction in opening hours, with over half of the branches open for only three hours a day in 2016.

Even with this reduction, there was not enough foot traffic to justify the continued operation of the entire branch network. As a result, in 2016 and 2017, Valiant decided to take an approach that prioritised both optimisation and expansion. 

Alongside improving their digital capabilities – by implementing Unblu’s digital reception – they also made the decision to open new branches in Romandie, Jura, and East Switzerland.

Initial results of the bank strategy 

The initial results of this approach showed incredible promise. Thanks to a more modular approach, branch setup costs were reduced from CHF 3–4 million to CHF 500–900k, while new digital capabilities meant that one agent could serve up to seven retail branches remotely. This represented an annual reduction in operational costs of CHF 600k for every seven branches. 

The decision to expand also paid off, with 50% of new revenue coming from the new regions and opening hours grew from 3 hours a day on average to 10 hours a day. The impact on the customer experience was also positive, with good feedback after the project launch.

Branch growth: analysing the 2024 results

Now, with the report published in 2025, we have access to more key metrics to determine longer-term effects of the branch strategy for Valiant. 

As Valiant describes it, “we want to create a holistic client experience by further strengthening the connection between personalised advice and the digital offering.”

The implementation of the digital reception was part of this, leading to the bank “incrementally expanding its presence from Lake Geneva to Lake Constance and creating new jobs in client and pension advice.”

Valiant now: 

• Is present in 15 cantons 
• Opened their 14th branch in Muttenz at the end of 2023 
• Completed the geographic expansion from Lake Geneva to Lake Constance one year earlier than planned
• Created 125 positions as part of the expansion

What about profitability?

The physical expansion plans were only possible if done in tandem with branch network profitability measures. In 2023, the branch optimisation process took place, which resulted in the closure of 23 branches and the loss of 50 full-time equivalent positions (meaning a net new of 75 positions created with expansion jobs). 

The branch experience for those that were left has been transformed and converted into “modern customer zones,” which has led to annual recurring savings across the entire bank amounting to CHF 15 million in total. 

The future of Valiant Bank

Looking to the future, the bank wants to continue their focus on “simplicity and profitability.” They hope to achieve this by building on what they have achieved to date. 

In fact, their confidence in the expansionist approach is so strong, that a total of “CHF 100 million has been invested in expanding, digitalising and further enhancing the offering since 2016.”

This is because Valiant has identified that having a local presence and being physically close to clients is a fundamental part of banking. No matter how much retail customers turn to digital banking, there will always be a place for branches to inspire trust in banking relationships and act as fixtures of local communities. And the statistics back this up, with Accenture finding that 67% of consumers like having a local branch as it speaks to the stability and availability of their bank.

Curious about the role Unblu played?

The primary branch technology used in Valiant’s successful expansion campaign was supplied by Unblu. The digital reception allows for customer engagement with an agent or adviser via an on-site screen, usually within 20 seconds. The agent can ensure an excellent, personalised service remotely, and if the conversation requires privacy or more detailed assistance, the customer is guided to a dedicated room for a confidential consultation.

For example, one of Valiant’s use cases was to help customers without debit cards withdraw cash. Before, this required having a teller onsite, which proved costly given the number of daily interactions. With the branch technology, however, customers can simply contact the digital receptionist, who directs them to a station for secure identification. Once verified, the agent remotely issues a QR code, enabling the customer to complete their withdrawal at the ATM.

Beyond simple transactions, the flexibility and security of this setup means that remote advisers can discuss loans, mortgages, or other high-touch interactions in a comfortable and intimate context – including digital signage.

Read the original article here.