Mobile banking tipped to wipe out 600 branches
This is a very interesting scenario… Great for banking but not so great for bank employees…
The proliferation of smartphones provides banks with an unprecedented opportunity to slash overheads and boost profits and will lead to the widespread closure of branches as more customers bank on the move, a survey by investment bank UBS shows. UBS analysts from London, New York, Hong Kong and Japan worked with KPMG on the 54-page report, published in July, which surveyed 67 bank management teams in 18 countries. Those banks on average expect a 5.6 per cent reduction in branches as a direct consequence of their mobile banking strategy.But in Australia, where bank branch numbers have remained steady for many years, banks participating in the survey expect a larger reduction in the number of branches over the coming years, of 11 per cent.
