menu

Bank's Branch of the future ? Will they exist ?

1
2568 views

With the things like digital transformation and app-oriented environment, we see fewer operations in the branches for routine banking. What do you think the role of the branches in future? Is this right to say that we might need branches ( or small branches) from 10 years from now?

Banking
Finance
Banking Law
technology
Innovation
Future Trends
Technical Leadership
Hitesh Mathpal
18 months ago

17 answers

2

This is the data from UK https://www.bbc.com/news/business-44483304

Hitesh Mathpal
6 months ago
Interesting. - Charu 6 months ago
Many thanks - Dr. David E. 6 months ago
1

Yes despite the digital transformation branches will be still needed for routine banking. Not everyone has neither access to the web nor the skills to handle on this about business or routine acts. Highly likely in 10 years the number of the branches and the employees will decrease but these are still fundamental.

Paolo Beffagnotti
18 months ago
True Paolo. Digital banking is still not available to large set of people, hence existence of branches will be there. But, I also think since a lot of automation is in place, the numbers will down. - Hitesh 18 months ago
Agree - a slow decline like ATMs - Dr. David E. 7 months ago
Digital marketing strategy has reduced importance of branches of bank. But - J N Das 6 months ago
Juslt like WF? - Dr. David E. 6 months ago
In 2017 in the US branches have decreased while deposit incresed. The number of customers visits dropped from few times per month to few times per year - Paolo 6 months ago
BBT and Sun Trust = merger - Dr. David E. 6 months ago
In spite of complete digital marketing need of bank branch shall be fruitful to complete requirements of customer and company. - Er. Jangyadutta 6 months ago
Is Wells Fargo Bank collapsing? - Dr. David E. 6 months ago
Exactly if there is bank, need of staff shall be there to solve the problem. - J N Das 6 months ago
The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent. News of the fraud became widely known in late 2016 after various regulatory bodies, including the United States Consumer Financial Protection Bureau, fined the company a combined US$185 million - Dr. David E. 6 months ago
1

Maybe not just one but few yes. Or maybe help with a remote access to your devices.

Paolo Beffagnotti
18 months ago
Of course. - Dr. David E. 7 months ago
Was the NIKE website just hacked? - Dr. David E. 6 months ago
1

WELLS FARGO

Goes down!

http://www.msn.com/en-us/money/companies/wells-fargo-customers-furious-over-second-service-outage-in-a-week/ar-BBTijJE?li=BBnbfcN

Any thoughts?

Dr. David E. M
6 months ago
Agree with you, goes down - Paolo 6 months ago
WF = Bad day today = No internet, no online, no apps and no ATMs. - Dr. David E. 6 months ago
BLOCKCHAIN for financiakl services? - Dr. David E. 6 months ago
not that a bad day sometimes, I would say more an old style day ;-) - Paolo 6 months ago
But, ongoing for the last decade - Dr. David E. 6 months ago
However existence of Bank with staff and digital facility has been giving more benefit. - J N Das 6 months ago
Maybe - depends on customers, culture, location, education and other social determinant of finance, etc - Dr. David E. 6 months ago
0

Ideally, with the available and projected technology and social behaviors, the consumer banking should be all migrated to branch-less banking. There is a lot more fruit for unconventional banks in the retail and consumer banking side, such as banks with telecom as their core business and micro-finance networks rather than existing large retail banks, unless they tailor their existential reasoning. On the other hand, corporate banking will remain the shop-based mechanisms with a lot of expected disruption but on a different scale.

Therefore, nature of bank branches will be different as they'll not be required to facilitate the payments as they are required now but may be in the form of a regional cluster office with specified numbers of agents, terminals and digital-branches substantially cutting the cost of maintaining the branches but also giving more penetration to the masses.

Suleman Hasan
18 months ago
I dont use aps - bank branches for me - Dr. David E. 7 months ago
WF = aps, online and ATMs down = HA HA! - Dr. David E. 6 months ago
I agree ,digital system reduced maintenance cost and expenditure. - J N Das 6 months ago
Yes Sir - Dr. David E. 6 months ago
0

Although the bank branches are important now in my opinion it may slowly diminish over a period of 10 or 20 years. Due to internet, mobile banking and several other mobile wallets it has become easy to maintain, transfer, purchase, pay, receive or do any kind of money transaction online. So, yes, the branches will definitely diminish in future. However, it will be required in the rural areas and places with poor internet connections.

Abhishek Raj
18 months ago
Diminish or will be less in numbers in 10 to 20 years ? - Hitesh 18 months ago
Diminish (may or may not). - Abhishek 18 months ago
YEP - Dr. David E. 7 months ago
However need of Bank offices shall be required for redressal of complaint and compliance of reports. - J N Das 6 months ago
THINK: WELLS FARGO - Dr. David E. 6 months ago
0

Just to add few more use cases - Are we imagining future branches are like a one man office, who is just helping you assisting the digital tools? Imagine human less billing counters at Walmart.

Hitesh Mathpal
18 months ago
No - fewer but larger and more full service branches - Dr. David E. 7 months ago
Interesting. Thank you David. How automation will replace manpower in banks ? Your views ? - Hitesh 6 months ago
Again - fewer but larger and more full service branches - Dr. David E. 6 months ago
Automation for the massess of asses - Dr. David E. 6 months ago
Full service for the affluent minority - Dr. David E. 6 months ago
Yes when all work shall be fulfilled by digital system automatically manpower shall be reduced to a man office. - J N Das 6 months ago
Fewer employees and fewer jobs - Dr. David E. 6 months ago
That part I agree. Thanks Dr. David E. Marcinko MBA - Hitesh 6 months ago
Many thanks - Dr. David E. 6 months ago
Poor unemployed folks will then need more bank loans, etc - Dr. David E. 6 months ago
0

I think branches will remain but in a different shape. May be - few people to provide digital assistance.

Charu Gulati
18 months ago
No - fewer but larger and more full service branches - Dr. David E. 7 months ago
Yes your view is totally correct. Any how bank branches shall be there. - J N Das 6 months ago
I am so Happy you agree; many thanks - Dr. David E. 6 months ago
0

Bank branches will continue to serve persons with technical aversion, and for those who still require or enjoy personal interaction. I fully agree that the number will greatly diminish and the services provided will shift, but they will persist in some form to address particular needs. For instance, more branches inside grocery stores rather than free standing as is current.

Michael Fruhling
18 months ago
I don’t trust banks and neither should you if you care at all about understanding the company in which you are investing. While financial statements for all companies contain estimates, virtually every line item on a bank’s financial statement are estimates – to the extent that, taken as a whole, the statements become little more than complex, arcane works of fiction. - Dr. David E. 6 months ago
0

In my opinion the whole financial business will be diversified into two groups, (i) With branch and (ii) branch less. For example, credit card transaction that does not require any in-person transaction or deposition can be run through branch less, whereas banking system that requires in-person deposition will operate with branches.

Samares B
18 months ago
Already nowdays = we've had virtual banks for more than a decade; now - Dr. David E. 6 months ago
Yes system is going on like with branch and branch less business.. - J N Das 6 months ago
Agreed - Dr. David E. 6 months ago
0

As many have already suggested in their responses, the nature of services in bank branches will clearly evolve, and the numbers of branches may change. I feel the need for personal services is on the rise, but not the need for mechanical aspects of banking (making deposits and obtaining loans), as those increasing can be handled on line by all of us on our cell phone. So perhaps this is an opportunity to redefine the service model of branch and community banks--tuned to the evolving needs of the market segments in which these banks are located.  A broad menu of micro-services helping communities with unique financing needs, assisting people with debt management, providing tax services, and helping retired people manage their finances in a way that will extend their independence...may be a few key areas to explore. Just as the rotary telephone of the past outlived its relevance, the telephone also created a whole new world of connectivity via cell phones. Perhaps branch banks can be a launching platform for needed services we have only begun to imagine.

Joseph Spadaford
18 months ago
Perhaps - Dr. David E. 7 months ago
It is also a matter that Agents are now playing role in several business between bank and customer. - J N Das 6 months ago
AGENTS work for company - Not customers. PERIOD - Dr. David E. 6 months ago
0

Banks will have branches for several reasons. There is no arguing that many of the most basic branch transactions of the past are now handled outside of branches. and that most of us find more convenient to manage the basic banking operations in a self-service mode. Yes, the banks need to keep serving people with adversion for the technology or in rural no well served zones and for very specific banking services which cannot be accessed remotely. They will also keep the branches in the centers of the cities to create a new very different point of contact with their customers, a kind of showcase of what their services are and will be and a way to create a different kind of relation with current and future customers. But, above all, there are few elements of our lives more personal, or of greater importance to us, than our finances. As humans we want touch points and access to the company and people we trust with our money . Customers do not really want physical access to branches, they want physical access to bankers...Which are still kept in the branches.

Massimiliano Piarulli
17 months ago
Interesting - Dr. David E. 7 months ago
GO! Wells Fargo - Dr. David E. 6 months ago
It is correct people want to trust a banker with greater importance like personal. - J N Das 6 months ago
People sure trusted WELLS FARGO; didn't they? - Dr. David E. 6 months ago
Wells Fargo account fraud scandal. The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent. - Dr. David E. 6 months ago
0

WF

The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent.

Various regulatory bodies, including the Consumer Financial Protection Bureau, fined the company a combined $185 million as a result of the illegal activity, and the company faces additional civil and criminal suits.

Any thoughts?

Dr. David E. M
6 months ago
Curious that employees say that little has changed in the meantime, https://www.theguardian.com/business/2019/jan/04/wells-fargo-fake-accounts-scandal-employees - Paolo 6 months ago
Agree - what a mess - Dr. David E. 6 months ago
CFPB = Liz Warren! - Dr. David E. 6 months ago
Interesting. Good article. Thanks David. - Hitesh 6 months ago
U R Welcomed - Dr. David E. 6 months ago
Good information, changes required. - J N Das 6 months ago
Many thanks - Dr. David E. 6 months ago
0

Branches will exist maybe not the way we see today. Smarter and more automated. "Bank" is trust and trust in humans need a human touch.

Maya Kharkwal MA, BEd
6 months ago
Can you please explain a bit more ? - Hitesh 6 months ago
Smarter means - More automated technology. Human touch - banking staff to talk about your banking decision, products, consulting etc. - Maya 6 months ago
Just like WF? Scams! - Dr. David E. 6 months ago
Bank branch will exist and customer will trust it even digital business. - J N Das 6 months ago
Customers trust BANKS? Really - Dr. David E. 6 months ago
Do BANKS trust customers? - Dr. David E. 6 months ago
0

Some data points -

  1. Banks across the U.S. have closed nearly 9,000 branches this decade. ( source WSJ)
  2. 2,868 bracnhes are closed in UK between 2015 - 2018 (Source BBC)


As per RBS -  "Since 2014 the number of customers using our branches across the UK has fallen by 40% and mobile transactions have increased by 73% over the same period".

I think small branches used for small investors are impacted because of digital banking growth.

Hitesh Mathpal
6 months ago
Good information. Thanks. - Charu 6 months ago
Agree - Dr. David E. 6 months ago
Digital banking system is a reason. - J N Das 6 months ago
Yes - agreed for the masses - Dr. David E. 6 months ago
0

In future bank branches shall only deal with consulting with customers when they are in any difficult situation while dealing smart activities. They will convince customers about business what should be adopted for more benefits.

Er. Jangyadutta D
6 months ago
OK - Dr. David E. 6 months ago
Thanks Sir, Now it is experienced that agents are also paying role in banking business. - J N Das 6 months ago
NOPE - they are just highly regulated employees - Dr. David E. 6 months ago

Have some input?