The news: The branch is key to consumers’ choice of primary bank, but banks overall fall short of a compelling customer experience, according to a recent study from Adrenaline.

More on this: Mystery shoppers on behalf of Adrenaline evaluated branch experiences at US banks and credit unions. They found that despite the value of in-person interactions between financial institutions (FIs) and their customers, FIs put product sales over addressing customer needs and underutilized digital tools. According to the report, traditional branch layouts steer visitors toward tellers rather than other staff.

The backdrop: Today, transactional tasks and day-to-day customer engagement largely depend on digital channels. As digital banking has taken over consumers’ relationships with their banks, FIs have needed to use other channels to do what digital cannot. For the branch, that means offering a physical and digital experience in tandem.

Banks have recognized the need to use their branches effectively. They’re buying, selling, building, and reformatting branches to target certain markets. Some branches are evolving from one-stop shops for everyday retail customers to also serve affluent segments with dedicated services. JPMorgan Chase, for example, has expanded wealth management and private banking to more than 50 of its branches.

Our take: Delivering a seamless, modern branch experience means breaking down silos between teams across digital, ATM, call center, and in-person channels. With customers expecting frictionless interactions, the old compartmentalized approach won’t work anymore.

Branches need to offer pared down, basic services that are traditionally expected combined with consistent, high-touch interactions that dovetail with digital services. When banks segment customers, the mix of high-touch and digital is even more important.