How should banks view the proliferation of online banking and how should they strategise the branch banking/online banking split ?

Question

Accepted Answer

Banks should embrace online banking and develop a balanced branch banking/online banking strategy.

Banks should view the proliferation of online banking as an opportunity to enhance customer experience and reach a wider audience.
They should strategize the branch banking/online banking split by focusing on customer preferences and needs.
Investing in digital infrastructure and technology is crucial to support online banking services.
Branches should be transformed into advisory centers, offering personalized financial advice and specialized services.
Online banking can provide convenience, accessibility, and cost-efficiency, while branches can cater to complex transactions and relationship-building.
A balanced approach would involve integrating online and branch banking seamlessly, allowing customers to choose their preferred channel.
Banks should continuously monitor customer behavior and adapt their strategy accordingly.
Examples of successful strategies include offering online account opening, mobile banking apps, and video consultations with experts.
Collaboration with fintech companies can also help banks stay competitive in the digital banking landscape.

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