Most of Canada’s major banks and trust companies are working toward an electronic future with fewer brick and mortar locations, but cibc says it’s dancing to a different tune, one being played by its customers.

While cibc encourages the use of electronic banking services, touting the convenience and security they offer, it’s rolling out a new customer-centric strategy in the Greater Toronto Area that it hopes will reposition the bank by renewing the emphasis on branches and personal service.

Although this concept has been in the works for several years, including a test in St. Catharines, Ont., the new focus could stand cibc in good stead if the proposed merger with Toronto-Dominion Bank comes to fruition.

Steve McNair, senior vice-president of the gta for cibc, says the strategy was developed through extensive research where customers made it very clear what they were looking for in a bank – financial advice and access to a teller during times that fit their schedule.

McNair says that aside from the fact that gta commuters lead busy lives, they may also be baby boomers looking for financial planning advice, or part of the baby bust generation that realizes they must plan now for their retirement in case the Canada Pension Plan disappears by the time they need it.

When cibc announced the transformation program a year ago, it allotted an investment of $200 million over three years toward improving its retail banking services in the Toronto area.

McNair says the whole intent of the program is to use the branches differently and to view them less as cost centres and more as sales platforms.

‘We’re trying to use those branches for transactions but also clearly to make sure we’re available for sales and advice for our customers,’ he says.

By the beginning of August, 169 of the 250 cibc branches in the gta will have extended their business hours, some by more than 20 hours a week, and 122 will be open on Saturdays.

In addition to increased hours, McNair says staff levels have also been augmented. More financial advisors have been hired and existing employees have received educational support in order to improve the qualifications and accreditation of the advisors.

cibc also earmarked another $100 million a year to provide better technology for the financial advisors in-branch, to enhance electronic banking services such as telephone banking, and to increase the number of abms available.

McNair says centralization of back office work has enabled the branches to be redesigned to provide more space for the salesforce and more privacy for customers.

The other seven cibc regions are also looking at ways of better serving customers. The gta experience will be assessed and the program could roll out to other areas.

Bill White, president of W. White & Associates, a marketing consultancy doing extensive work in the banking and financial services sector, says cibc’s plan is clearly in response to the public relations problem Canada’s big banks have with consumers, a problem that’s been growing in proportion to their profits. The announced mergers only compounded the issue.

White says mergers will no doubt benefit shareholders and give the banks larger economies of scale, but Canadian consumers are not convinced they will benefit.

‘I think banks in Canada are very sensitive to the fact that they need to do something to demonstrate that they’re going to continue to offer appropriate levels of service to Canadian consumers.’

White believes that, ultimately, the Canadian market will be opened up to foreign competition so legislators can guarantee consumers choice and ensure that services and their charges are competitive.

A recent study called Consumer Opinion of Financial Services, conducted by Compas Inc. for Investment Executive monthly, seems to support White’s comments, indicating that a majority of consumers favor the mergers if the federal government allowed competition from new banks, small banks, insurance companies or other financial institutions.