This article originally appeared on The Business Daily.

Retail banking has become a digital business, spurred by the spread of broadband access and affordable smart mobile devices.

But digital channels will not fully replace physical channels, nor will branches disappear.

The main challenge for banks is to fuse digital and physical assets into a hybrid combination that customers now demand — what we call a "digical" transformation. The best practices are occurring outside the US.

Bain’s surveys and interviews with 78 global retail banks show five specific imperatives that are essential for building a strong bank of the future.

Read the full article in The Business Daily.

Franzen is a partner in Bain & Company’s financial services practice in SA; Vater leads Bain’s global retail banking practice from Frankfurt.