the future of bank branches

Sources:1. AZCentral.com, “Are bank branches endangered species?”, May 2013; Chicago Tribune, “Illinois sees more bank closings than openings in last year”, July 2012

2. American Bankers Association, “ABA Survey: Popularity of Online Banking Explodes”, September 2012

3. Forrester article: “The State Of North American Digital Banking: Priorities, Goals, And Metrics”, 2012

4. EFMA, “THE FUTURE OF BANK BRANCH NETWORKS”, December 2012

5. Novantas, “U.S. Multi-Channel Customer Research 2012”, May 2012

Business and economicrealities have forced the

shutdown of bank branches

Digital technologies havebrought a significant shift inconsumer banking behavior

In the US, 3,000 bankbranches closed between2009 and 2012

Based on the levels of digitization,we predict the emergence of four bank branch models

Focuses onstandardized

products and services

US Customers - Online BankingPreference

Transactional activitieshappening onlinein North America

Bill Pay

Money Transfer

View Statements

View Balances / Transactions

The Future ofBank Branches

Evolution of Retail Banking

Proximity and Advisory will remain integral to a bank branch

We don’t envision a branchless future, but a future with fewer branches.

Involves low levelsof digitization

Has low levels of digitizationwith self-service options

Minimal staffing withoutcomplex advisory skills

Focuses on relationshipbuilding with high levelsof customer intimacy

A showcase for high-techbanking innovations

Provides complex advisory services

Flagship branch thatincorporates all aspectsof self-service and online banking

Promotes high levels of customerproximity with an entire range ofadvisory services

Used to reinforce abank’s brand image

Offers retail-likedisplays andself-service aislesfor customers

Limitedadvisory services

- Video Conferencing- Online Document Sharing- Digital Signatures and Card Readers

1.THE SHOP

20112010

36% 62%

Digital Technologies will Accelerate Branch

Transformation and not make them extinct

2.THE LOUNGE

3.THE DIGITAL POD

Reach out: Interested in reading the full report? Visit http://www.capgemini-consulting.com/the-future-of-bank-branchesFollow us on Twitter @capgeminiconsul or email dtri.in@capgemini.com

4.THE PHARMACY

of US Banking customers believe

that a bank is not even legitimateunless it has branches, up fromonly a year ago

90% 41%

47%

Total Branches Cost of Existing Branch Network

Differentiate Branch NetworkBased on Proposed Models

Total Branches

4,000 $ 2,100 million

STEP 1 STEP 2

Post 10% Rationalization

3,600

The Pharmacy

15% 20%

45%

20%

Digital Pod

The LoungeThe Shop

The future of banking lies in physical co-existing with digital.

Total Savings

30%

Our Estimation Model

Current State of Bank

Optimizing a branch network helps banks save up to 30%

Cost of Proposed Branch Network

$ 1,472 million

of consumersprefer face-to-face advice

for complex products