Press releases

Bank branches keep their roots

10 January 2014

Demand for bank branches is likely to increase in 56% of locations across England and Wales, finds Deloitte.

Bricks and Clicks: Mapping the future of branches analysed 10,400 branches for nearly 100 retail banks and building societies. It sought to understand how factors such as population, demographics and the local economy, both current and forecasted, will affect people’s banking needs. Bank locations now fall into seven key micro-markets*, which paint a new picture of consumer demands for products and services.

The figure reinforces recent Deloitte research** that 72% of people still usually go to the high street or shopping centres to access banking and financial services.

It compares with the remaining 44% of locations, where telephone and internet banking could take priority over branches. Demand here is expected to be highest amongst ‘silver surfers’, those aged 65 and over.

Louise Brett, lead financial services analytics partner, commented: “Bank branches are not dead. In fact, they are poised for a renaissance; just not in their current numbers or formats. Demand varies from one micro-market to the next. If banks are going to keep pace with consumers’ needs, careful consideration will need to be given to where, when and how products and services are provided.”

Harvey Lewis, Deloitte Analytics research director, added: “For some banks, branch staff may need to shift their focus from routine over-the-counter cash transactions to providing personalised service for new customers on the hunt for competitively priced financial products. But, for others, the branch may need to become a simple, convenient gateway so people can self-serve. This isn’t about closing branches; rather it’s about having the right people, products and services in the right place at the right time. Only those that build their branch proposition on the most appropriate balance between ‘bricks and clicks’ will be the winners with customers.”

                                                 End

Notes to editors

Seven micro-market segments

  • Retirement areas: where new ‘silver surfers’ appreciate convenient locations and the support of staff as they shift to using direct channels
  • Booming towns and villages: where footfall is currently low but employment and retirement is bringing new customers to the area
  • Declining rural communities: where the population is falling and growing older and businesses are struggling
  • Struggling blue-collar towns: where competitively priced products and timely access to relevant services and guidance is needed
  • Super conurbations: where a new type of young, affluent customer is seeking a mix of contemporary formats, convenience and personal service to guide them through new product purchases
  • Commuter zones: where wealthy workers and their families need branch flexibility and an efficient, tailored service to suit their busy schedules
  • Young urban centres: where students, job seekers and house hunters need a blend of convenience and no-nonsense guidance to help them take their first steps towards financial independence.

Deloitte Consumer Review - November 2013

About Deloitte
this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.


"Bank branches are not dead. In fact, they are poised for a renaissance; just not in their current numbers or formats. Demand varies from one micro-market to the next. If banks are going to keep pace with consumers’ needs, careful consideration will need to be given to where, when and how products and services are provided.”-Louise Brett, lead financial services analytics partner

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