The retail banking industry’s banking channel has evolved from traditional full-service branch banking to alternate channels such as online, mobile and self-service. Full-service branches still play a key role in the distribution of banking products and services as banks rely on these branches to generate the vast majority of revenue. However, the operating expenses and infrastructural investments associated with full-service branches encourage banks to consider low-cost self-service branch banking to expand their market presence. Banks have redefined branch banking following the financial crisis in order to maintain operational efficiency and to improve overall financial performance. While full-service branches remain the primary contact point for customers, banks realize that the expansion of the branch model is not sustainable due to rising real estate costs and changing consumer preferences. Low-cost channels such as self-service, online and mobile banking have therefore been gaining momentum. These channels are adopted with the aim of cost-effectively expanding business in rural and unbanked areas.
The report provides market analysis, information and insights into self-service branch banking with global snapshot of self-service branch banking adopted by retail banks in developing and developed economies in the banking industry. Report also gives brief analysis of self-service branch banking trends and drivers and key operational opportunities and models adopted by retail banks globally.
Report also covers a comprehensive analysis of self-service branch banking business models adopted by retail banks and insight into the various trends seen in self-service branch banking. Operational, technological and regulatory drivers driving the growth of retail banks are also covered.
Key Highlights of this report
- The number of ATMs deployed in key countries increased during the review period (2008–2012), making them the most widely-used self-service banking model. In the US, the total number of ATMs increased from 425,010 in 2008 to 444,872 in 2012.
- The adoption of new technology enables banks to upgrade their branch banking models with advanced banking features and to distinguish themselves from competitors. Such features include biometric ATMs for secure banking transactions and contactless ATMs for faster transactions. Furthermore, the use of videoconferencing in ATMs enables interaction with bank employees for banking assistance.
- Retail banks around the world seek to expand their business footprints in unbanked and under-banked areas to target new customers and gain market share. However, the establishment of full-service branches is not always feasible for banks due to the costs associated with it, driving banks to adopt the self-service branch banking model to remain cost-effective. Banks set up these types of branches in remote areas and at places with high customer footfall such as stadiums, shopping malls, railway stations and marketplaces.
- The penetration of self-service branches has increased as banks are more reliant on offering quality service and enhanced customer experiences through facilities in these branches such as automated self-service kiosks, flagship branches, contactless ATMs and in-store self-service branches. Consumers can now conduct around 80% of banking transactions through ATMs and other automated banking channels without staff assistance.
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