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Changing Face of the British Bank
UK banks are the most crowded in Europe, serving on average over 5,000 people per branch, according to a new report by Datamonitor. The figure reflects mass closure of high street branches in the late 1990s and is five times that for Spain.
The report. 'Branch Banking in Western Europe', describes how banks are now reinventing the branch as an advice centre for affluent customers or a financial shop for mass-market customers. It predicts that branch numbers in the UK will continue to fall but 'at a lower rate - from 11,565 in 2003 to 11,054 in 2008'.
Banking online has grown rapidly but slightly less than expected by some forecasters. Estimates suggest that just over 50 million consumers bank online in Western Europe, and 11.5 million in the UK alone. 'While the Internet channel has certainly become one important distribution channel, and the number of people banking online will increase, it has not ousted the branch and is unlikely to do so in the foreseeable future' according to Basel Ous, Financial Services Analyst at Datamonitor and author of the report.
Branches are still the leading channel for sales generation, particularly for high-value products and services, and many with online bank accounts are simply using the Internet in addition to their branch. Ous says that customers have been reluctant to use the new electronic distribution channels to conduct complex operations like obtaining a mortgage - face-to-face interaction is still highly regarded. Branches will increasingly move toward open plan layouts, with branch advisors moving freely amongst customers or sitting at open desk spaces that are accessible to customers, and that the simplest transactions and inquiries will be moved to self-service machines.
The report covers France, Germany, Italy, Spain, The UK, the Benelux and the Nordic region. Datamonitor's web site is at www.datamonitor.com
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