65% of banking execs believe that the branch-based model will be "dead" within five years

A recent survey of 305 senior global banking executives found that almost two thirds (65%) believe that the branch-based model will be “dead” within five years… :bank:

They said that Open Banking and increased competition from big tech and new entrants are causing banks to rethink their business models.

Banks are now focusing on cybersecurity, AI and cloud computing as they accelerate digital transformation projects.

How would you feel about the end of bank branches? Do you think there’s still a need for them? :thinking:

Oh yeah, a load of old white guys predicting the future… Suure. Rethink the branch from the BS natwest upsell scheme etc to something that actually serves customers and it’ll be a winner :1st_place_medal:

What’s this?

Go in for a discussion on your current account and walk out with a mortgage, a car loan and a credit card

Must admit I still disagree; customers are adequately served online. Branches aren’t relevant and we’re just forcing banks into it because of concerns w/ cash access and trying to keep jobs / access for the elderly

Oh I didn’t realise that’s what happens in some branches - doesn’t sound great, or very helpful…

I think banks would really need to focus on their customer service if they took branches away - sometimes it’s just easier to discuss complex things in person and I think it would be a shame if it became too difficult to get proper answers!

I think it sounds like you want HandelsBanken

Local branch manager business, if your business isn’t doing well and you know the bank manager well they’re able to give you finance on the spot if you can convince them you’ll make it through

They give that touch of support and nuance that only someone with experience in finance can do for you. It’s true 1950’s banking in 2020’s.

And do they do it all online?

Handelsbanken was in branch before covid - no idea now, but probably zoom!

Once went into natwest and they tried to upsell me on a mortgage, until they noticed I’d only got it from them the day before! Just a generally aggressive atmosphere in branch that does (did?) nothing for the brand or willingness to go in

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HandelsBanken is all in branch, even throughout COVID, they’re going to be the bank I incorporate because I think they can give a lot of personal touch that others can’t

For instance if I want to expand to another market and need some guidance, the branch manager has seen tens to hundreds of businesses :slight_smile: he can give me some guidance there, maybe even talk to a branch manager in a European market that he knows and ask how they file tax there or something like that

But that’s a good service and one we used to get standard, now that’s all changed and foolishly since we don’t educate either men or women on home finance nor any big financial decisions or entrepreneurship

That’s why HandelsBanken is doing a good job now imo, providing the skills for you that you should be able to get from your bank but that they don’t offer

It’s the old model of co-management with your bank that’s been holed under the water at traditional UK banks by scandals like the RBS bankruptcy scam. There’s a lot of potential value in additional services for small businesses, some of which I think still needs bricks and mortar

I think it’s partly why business seems more confusing for people now.

No one knows it all when starting a new business, but your bank manager or one of their assistants if they were willing to sit down with you for a cup of tea to talk about your business in more detail with your finances in front of them, probably could offer you a level of suggestion. Especially when he knows how to value a business, your profit streams etc

For context; I’m planning to open an online ‘social media’ platform (for a lack of better words) something like trakt.tv but for a more specialised market. I still think I’d feel a lot more comfortable in entrepreneurship, with someone who’s older (40+) who’s been in finance for quite a number of years now and really has a subtle understanding of business and understands the nuance in companies as an adviser. That’s what a bank manager should be, in my opinion. I also reckon they likely have links with local accountants that they’ve met over the years so could probably advise you who to use for bookkeeping/accounting or even explain the basics of bookkeeping to you, especially if you’re only selling one type of thing (making it rather simple).

I’m a firm believer that you’re there to provide vision and a consistent measured approach to growth, not necessarily to provide financial security to the business. That’s when you sit down with your bank manager and say “look, I don’t know it all, I’m still learning as I go. Can you sit down with me later this week for an hour and give me some ideas on how to increase my cashflow”

While reading Duncan Bannatyne’s book I actually noticed that he had a friend who introduced him to a bank manager back when Barclays used to give them a lot bigger of a say, to which they used that relationship to give him a loan after looking into his finances and plans in a much more nuanced way that Barclays would now. He got that loan and used it to grow his company.

I think I was reading and HandelsBanken as a result has made better return on their capital employed in loans, because their branch managers approve without oversight and know what they’re looking for.