Chris Skinner talks about his views about the viability of Branches. Not surprisingly, the assessment is that the Bank branch of yesterday is dead. Customer service, relationship management and customer acquisition must evolve as consumers move away from the branch in favor of other channels, including online banking and social media.
We believe that demographics and legacy decisions about branch locations will have severe repercussions for many Banks and Credit Unions. Executives in these institutions should be proactive in examining their specific situation, as well as exploring opportunities to grow their addressable market via “virtual branches”.
Thomas Brown of BankStocks.com reported from the Bank Director magazine’s annual “Acquire or be Acquired” conference in Phoenix that which we have all known for some time: regulatory pressure is escalating at an exponential rate competitive pressures are increasing As a result, scale is required to compete in today’s environment. It is widely believed that any bank under $1b assets will be challenged. The problem is that few buyers are interested in anything other than pristine organizations that present a meaningful opportunity.