Demand for bank branches is likely to increase across England and Wales, according to Deloitte. Bricks and Clicks: Mapping the future of branches took data from 10,400 branches for close to 100 retail banks and building societies.
It looked at how several factors affect customers’ banking needs. These factors included the following:
Bank locations now fall into a total of seven micro-markets which paint a picture of consumer demands for products and services. The market segments are as follows:
The figure confirms Deloitte’s research, which indicates that 72 per cent of people are still visiting the high street or shopping centres for their banking and financial services needs.
Bank branches are not “dead,” Deloitte says, especially for the generation known as “silver surfers.” This is the group aged 65 and over.
Instead, they are poised for what is being termed a “renaissance.” Demand does vary from one micro-market to the next, however.
If the banks are going to keep pace with consumers’ needs, they will need to consider them very carefully and provide the appropriate products and services accordingly.
At some branches, the staff may need to shift their focus from providing over-the-counter cash transactions to offering personalised service to customers.
Today’s banking customer is looking for competitively priced financial products, and may be more likely to switch to another branch if they can’t find what they are looking for at their current branch.
Some customers like the convenience of self-serve banking, and this option will still be available as well.
Harvey Lewis, Deloitte Analytics research director, pointed out recently that the bank wants to ensure that it is offering the right people, products and services to its customers.
That will be the key to finding the right balance between “bricks and clicks” to serve their customers’ needs.
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