As many as 1 in 3 bank branches tipped to close
Earlier this year it was estimated that as many as 1 in 10 bank branches in Australia would be closed as mobile banking continues to reduce the demand for physical branches.
Now, some are predicting that as many as 1 in 3 bank branches will be closed as mobile banking services continue to gain traction.
This latest prediction comes from global management and consulting firm Bain & Company.
“Visits to Australian bank branches were down almost 10 per cent in the September quarter compared to the same period two years earlier” Bain & Company’s Boston-based head of global banking Gerard du Toit said.
“Everything suggests this market has more branches than it is going to need five years from now. It is hard to say how many closures there will be but global trends indicate a possible reduction of 10 per cent to 30 per cent”.
Don’t expect to see branches disappearing overnight, the big banks are well aware that they need to maintain a strong physical presence to avoid losing market share.