Branches bough to mobile

Banks continue to invest millions in branch networks, but could this investment be ill-timed?

 

Could the mobile phone be the branch of the future? Brett King, the author of Bank 2.0 certainly thinks so, arguing in his book that mobile banking will be the final nail in the coffin of branch banking. It's perhaps no surprise then that King thinks Australia Post should embrace the direct channel ('Banking goes postal') if it chooses to offer a suite of financial services. King says Post should give its distribution network a simple supporting role in any banking strategy.


It's true the Australian market is light on direct plays, and it's an opportunity that's been overlooked for too long, particularly when many non-banks are exploring the evolving market for mobile payments. Gartner is predicting the number of mobile payment users worldwide will exceed 108.6 million in 2010, a 54.5 per cent increase from 2009, with Asia Pacific leading the way.


Looking more closely at the Australian numbers, our contributor Elton Cane paints a frightening picture in 'Wither the branch'. Despite the number of ATMs and branches increasing in recent years, cash use continues to decline at the same time as mobile banking use grows exponentially. Australia's major banks continue to invest millions of dollars in branch networks, but could this investment be ill-timed?...

 

FEATURE STORIES

RETAIL DELIVERY & DISTRIBUTION

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Banking goes postal

Sure, Australia Post has more than 3,300 outlets, but that alone is not enough to attract and retain banking customers
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MARKETING & BRANDING

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Count on Abacus?

Abacus' new ad campaign that champions mutual institutions over banks is reliable, says CEO Louise Petschler
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COMPLIANCE & RISK

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Exit stage left

As ASIC consults with the industry on how it should enforce tougher rules targeting mortgage exit fees under new unfair contract laws, how worried are the lenders?
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BEST PRACTICE & INNOVATION

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Low value, big change

The infrastructure that deals with low value payments in Australia and New Zealand is being transformed
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IN EVERY ISSUE

Retail Delivery & Distribution
From coffee machines to juke boxes, banks are starting to incorporate retailing concepts into their branches.
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Marketing & Branding
Retail banking is one of the most competitive sectors for branding in the world. How do you ensure your brand stands out?
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Best Practice & Innovation
Defining best practice can be difficult in retail banking. When innovative products come along they are quickly copied, so staying one step ahead is essential.
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Compliance & Risk
A decade of legislative change in Australia has left retail and wholesale banks struggling to develop and maintain a culture of compliance. Is there an upside?
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People & Performance
The war for talent in financial services is driving innovation in recruitment, retention and rewards being offered to employees.
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