Professors B. Joseph Pine II and James H. Gilmore published their groundbreaking book "The Experience Economy" in 1998. In it, they described an emerging stage of our economic development where "experiences" or "memories" become the essential product offering of all businesses. Twenty years ago, this prediction seemed so outlandish, particularly for retail financial services, that its implications for retail branch networks were unimaginable.

Over the intervening years, technological and market forces have conspired to level the competitive landscape, turning financial products, services and even processes into interchangeable commodities. As predicted by Pine and Gilmore, the experience economy requires industry leaders to reinvent the experience of banking in order to meaningfully differentiate one financial retailer from another:

• Online and mobile technologies have allowed financial institutions to reduce costs by migrating routine transactions to digital tools.
• These digital tools – both member-facing and back-office operations – have led to more standardized products, services and even processes, reducing the apparent differences between rival institutions.
• Commodification and market saturation have dulled consumer perceptions of the industry, raising the stakes for new forms of differentiation.

The branch will never be the same. As many legacy functions at the branch decline, new experiences are taking center stage. But what exactly are they, and how do industry leaders find a relevant path forward with their retail strategies? Or, as some believe, is the branch finally facing its final days?