The future of branches?

mgdavid

Bloomberg wrote: »

.... It would be interesting to know what other readers think?

Times change, technology is an enabler. If banks become ever more efficient and drive down costs so that they can maintain free domestic banking I'm all for it.

jonesMUFCforever

Simples - use them or lose them.

colsten

I reckon there will still be a need for a few years, say 15-25, for branch services as we know them today. This timespan is to allow for those people who cannot imagine to be without a bank branch. But the tide has already turned and many people don't now have a need for a branch as the vast majority of people can process almost everything online or on the phone these days.

I can imagine that in the future, we will have small, physical, "finance marts" (for want of a better term) where you can walk in and make withdrawals and deposits, pay bills, arrange for loans, overdrafts and mortgages - and the shop will offer you a range of providers (i.e. banks, building societies). Of course the need for calling into one of these marts will be minimal as everybody will have online accounts and will be able to pay electronically (with cards as we know them today, by mobile phone, by chip implanted into their finger etc). A bit like mortgage or insurance brokers, and a bit like the rudimentary banking services the Post Office provides already. Just with a lot more vision and energy.

These finance marts will of course also have online presence,and offer loans etc from all sorts of providers...may be the next step for those comparison websites.

lr1277

There may not be branded branches in future, but marts where you have cash transactions for all banks, but at one counter. Perhaps at the post office (if it still exists).


This is based on my following suspicions:
As well as technology changing, so do people.
Technology: as the use of technology increases, so do the ways fraudsters/thieves find ways of taking money off you. You can say that you are protected by the bank, but doesn't mean that some people will accept that explanation and will prefer face to face contact.
Also as people get older, and less mobile (both personally and vehicular wise) they will want accessible branches.
It is possible that the current generation of older people 'get' technology and continue to use technology as they get older, and so this won't be a problem, so I am speculating.

System

Whilst there is physical payments - be they cash, cheques or paper bills BGCs there will always be a need for some physical location to transact with them.

I would imagine an increasingly skeleton range of branches in cities and large towns are the way forward; with smaller locations using the Post Office or ATMs for physical transactions.

moohound

I only use the branch to pay in coins from my sealed pot challenge, and they go into a machine that counts them for me.

Stuart_W

I joined smile in 1999 and have hardly ever been in to a bank branch since. For the odd cash deposit, the post office does the job. If I do get lumbered with a cheque for any reason, a freepost envelope suffices. My mortgage was arranged entirely by phone, never went to see anyone.

I'm surprised changes to branches have been this long coming.

Surely branches will be reduced as demand continues to change to just major towns and cities in due course as the current shift continues.

pinkdalek

Branches have changed/evolved over the last 20 years anyway.

They are typically a generation thing, the development of technology, debit cards, demise of cheques has meant the typical banking customer of today no longer relies on a branch on a regular basis as say a banking customer would 20 yrs ago.

I still think banks will have branches, yes with more self service devices, but they are still a method for their customers to contact them. There will be those out there who would prefer to see someone face to face for certain products, for example mortgage. Don't forget they also seem to be a focal point for people to go to when things go wrong too!

Many look online at products (in all areas) but then prefer to see the real thing before they purchase.

Branches have been closing every year, in local districts, shops in town centres are closing due to retail outlets/malls etc.

Future of the branch may well be based within supermarkets or retail outlets where the day to day shoppers go. I can see branches opening times changing, to include Sundays, I never understand why they need to open at 9am everyday during the week, the customers they ideally want to see are at work then!

System

I know personally that I use Internet banking or a branch.

I try to avoid call centres as i think the staff are generally poorly trained (and paid) so will give inaccurate information or fob you off relatively easily.

pinkdalek wrote: »

Branches have changed/evolved over the last 20 years anyway.

I still think banks will have branches, yes with more self service devices, but they are still a method for their customers to contact them. There will be those out there who would prefer to see someone face to face for certain products, for example mortgage. Don't forget they also seem to be a focal point for people to go to when things go wrong too!

Many look online at products (in all areas) but then prefer to see the real thing before they purchase.

EssexExile

I like automated banking, I find it works well. The only time I have problems is when humans become involved, either at call centres or in branch.

I'm so glad I'm not human.