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Bank 4.0
book

Bank 4.0

by Brett King
December 2018
Intermediate to advanced content levelIntermediate to advanced
352 pages
8h 43m
English
Wiley
Content preview from Bank 4.0

4From Products and Channels to Experiences

We still have one million people coming to our branches every day, and they need that channel. Some need it to transact, but a lot of them come in for advice and we want them to do that. So, we need a certain footprint of financial centers. —Paul Donofrio, CFO at Bank of America

The new “network” and “distribution” paradigms

Let’s propose a binary question for the digital age. In 10 years’ time, who do you think will have a greater chance of survival—a bank wholly dependent on branches for revenue and relationships, or a digital pure-play, challenger bank wholly dependent on digital channels?

If you answered a branch-based bank, I think the facts suggest a different reality1. While branches aren’t going to disappear in the next 10 years, the relative importance of a bank branch for day-to-day banking is most certainly in decline. In December of 2015, Bankrate.com reported that 39 percent of Americans hadn’t visited their bank branch in the last six months, and a report from CACI in 2017 predicted that visits to branches are set to decline by another 40 percent over the next five years. This is a global phenomenon in developed nations.

We’ve seen drops of 30 to 40 percent happening over a few years, and in some of our traditional bank branches around Australia in some areas we see as little as five or ten people [visit] a day, and the economics are very difficult...But what’s happening is the growth in digital interactions ...

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Publisher Resources

ISBN: 9781119506508Purchase book