News & Views - Savantor
You are here:
/
/
/
Bank branches

Bank branches, challenger banks and the future

Saturday, 16 June 2018

In a month when statistics have been released showing that UK banks are closing 60 branches a month as more consumers move online, the place of the bank branch in today’s technological world is becoming more and more precarious. The recently announced proposed merger of CYBG and Virgin Money will also add to this number, with the loss of a number of branches anticipated as a result. 

Nevertheless, it is a digital world today and banks will take steps to focus on those areas where they can be most profitable and gain best competitive advantage. The high street banks in particular are struggling to survive against the newer challenger banks who are less shackled by unwieldy infrastructures and outdated business models.

In a recent survey undertaken by Vendor FIS, it is the challenger banks – which tend to focus on digital services as opposed to high street offerings, who score highest in terms of overall customer satisfaction. The results of the survey showed that 76% of first direct bank customers are ‘very satisfied’ with their banking relationships, compared to 69% of those who bank with one of the ‘traditional’ banks.

With the continuing trend towards online banking, the use of mobile is becoming increasingly popular, particularly amongst millennials; the FIS survey shows that 76% of digital bank interactions by people in this age group were conducted via mobile, while only 21% prefer desktops and laptops.

Some banks have taken active steps towards encouraging customers to move online; ABN Amro reports that 90% of their customers over the age of 65 use internet banking, although only a quarter of customers access their accounts via mobile phones. As a result, the bank has introduced financial coaches to offer extra support and assistance to older clients migrating to digital, for whom a switch to online banking, particularly mobile, is too big a change to get to grips with.

Banking consumers are demanding ever-more consistent and convenient banking experiences, and it could be said that it is the mobile interface - not physical locations or even personnel - that is now the ‘face’ of a bank. 

This gives the challenger banks a clear advantage in today’s technological environment. The more traditional, longer established banks need to find ways of competing successfully with them to be able to survive longer term. Moreover, the other potential players in this sphere should not be forgotten – the likes of Amazon, Apple and Google, all of whom are making forays of their own into the payments arena and who also have a huge amount of data about their customers and their spending habits. In this context it seems unlikely that the old ‘bank branch model’ of banking will survive.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

Platform Selection

"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Acquirer Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.