Bank branches will be a thing of the past in five years, say bankers
Summary
In as little as five years from now, banks will no longer use high street branches as part of their customer service channels, according to two-thirds of bankers. According to a report by the Economist Intelligence Unit (EIU) for financial services software firm Temenos, 65% of executives believe the branch-based banking model will be dead in five years’ time. The latest technologies such as cloud, artificial intelligence (AI) and application programming interfaces (APIs) are seen as the drivers of this transformation, according to two-thirds of the senior banking executives who responded to the survey. “Burdened by physical branches and legacy systems, and with challengers offering attractive auxiliary products and often superior customer service, many established banks are opting to partner with fintechs,” said the report. Aalishaan Zaidi, global head of digital banking at Standard Chartered, said the change in attitude and culture was a result of the pandemic.