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.

Using the latest numbers from the Australian Prudential Regulation Authority at June 2014 there were 5483 bank branches in Australia. The closure of 11 per cent would amount to 603 branches.

http://www.smh.com.au/business/banking-and-finance/mobile-banking-tipped-to-wipe...

But if that's what the customer wants to do?
How often do you go into a bank branch nowadays?
I know with me it's maybe once in 6 months.

Sir Grappler Truth Teller OAM wrote on Aug 3^rd, 2015 at 10:45am:


See, this is where I disagree with some of you.
You're coming at it from the angle of "their intent" to get rid of jobs.
I'm coming at it from the angle of you can't fight what the market dictates.
Not that I like to see people lose their jobs, any more than I wanted King Cnut to get his shoes wet.

Sir Grappler Truth Teller OAM wrote on Aug 3^rd, 2015 at 10:45am:



I went into the bank to do a transaction and the nice lady said to me soon you will no longer be able to do that transaction over the counter, I says yes thats so the bank can get rid of your job, she says no I'll be redeployed, I said yes redeployed to centrelink 

I don't recall the last time I walked into a bank...

Sir Grappler Truth Teller OAM wrote on Aug 3^rd, 2015 at 12:31pm:


But what you are saying is that the banks should keep a lot of low traffic branches open when clearly the evidence is people want to do their banking online.
Who does that benefit? The relatively few people who remain employed? They will probably get so bored they will leave anyway or they will feel their jobs are insecure and leave.

Who does it disadvantage? The rest of the bank customers, because obviously costs are higher than they need to be and so fees will be higher than they need to be.
The banks' shareholders, because profits will be lower & that flows on to lower dividends. I know we are talking marginal effects here, but everything adds up.

The thing is, what a business does has to reflect what the customers want. You just can't get away from that.

You deposit takings? You work there? You're a bank robber?

bogarde73 wrote on Aug 3^rd, 2015 at 2:28pm:


Lots of people prefer a bank nearby - and they get a chance to commune with the staff who they've probably known all their lives.... "G'day, Mary - how's the kids?  Still married to that bloke what threw a stick atcha in first grade?  He's a larrikin, that one.. but a good worker!"

Bank fees shouldn't come into it - the concept of bank fees was introduced to cover the costs of ATMs and such - and has grown out of all proportion.  My view is there should be no bank fees - with a start being none for pensioners and social security recipients.

Like cheap trade with China for cheaper goods - as I said then - it's one thing to have cheaper goods available, but entirely another to have no choice but to buy them.  The direct outcome of that is that a Sidchrome spanner costs much more now.... due to volumes of trade .. and thus the impact is double from cheap imports being virtually the only game in town.

Translate that to banking - it's all right to have online banking available - and remember the banks encouraged that with fees for over-the-counter transactions (many such may have been dropped now that the effect has taken hold - there ya go for proof) - it's entirely another to have no choice.

Also online banking for many raises the spectre of insecurity of their information - not too unfounded when you supposedly secure internet connection can be robbed occasionally by some twerp out there who downloads masses (happened to me last week, and has happened before) through my phone (apparently) when I've never once used it for internet.

Where there's a will there's a way and that is one reason I keep several accounts - so that at least one will be preserved from intrusion, just in case.  I can instantly change my pension and wages inputs to another account if I so desire.

Many people do not do that, and so remain wary of internet banking.

Anyway - closing banks is a pain also due to the lack of personal contact.  People prefer people to machines.... ask any Woolies or Coles buyer...