Recent news stories continue to batter Britain's once-thriving bank and building society networks. Many branches continue to face the risk of closure as the banks manage rising operating costs and face new market and political uncertainty.
In recent years, banks and building societies have focused heavily on direct channels such as online and mobile banking, in response to the 'always-connected' consumers who have come to expect seamless banking services delivered through a mesh of telephone, web, mobile, Automated Teller Machine (ATM), and remote and in-person channels wherever they may be.
As a result, the branches of traditional high street banks and building societies have suffered from chronic under-investment, yet physical presence is often the focal point for delivering convenience, service and value to customers. In fact, the recent Deloitte Consumer Review – Reinventing the role of the high streetfound that 72% of consumers still usually go to the high street, shopping centres or retail parks to access banking and financial services, with more than two-thirds saying they will continue to do so in the near future.
So besides closing unprofitable locations, what can banks do with their physical networks to drive lower cost-to-income ratios and maximise opportunities for revenue growth? To answer this question, we analysed over 10,400 branch locations in England and Wales, along with 56 variables across current and forecast changes in consumer behaviour, age structures, personal wealth, economics and business demography. The result will surprise decision-makers who have assumed the battle for branches has already been lost to direct channels.
Tov view the full article please click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
