Report Predicts Shrinking Retail Bank Networks in Developed Markets
As much as 50% of existing retail bank branches in developed markets such as the UK, Europe and the US will be obsolete by 2020 as banks assess their space requirements, according to a retail report issued by Jones Lang LaSalle. However, the real estate services group suggests that the decline will be offset by an increasing number of retail bank branches in developing countries such as Brazil, China and India.
The report, titled ‘Global Retail Banking: Key Trends for Retail Estate’, forecasts that changes in global retail banking will be fuelled by increasing customer demand for innovation, flexible service capability and banks actively managing their brand’s presence in a retail environment. Evolving customer needs are continuing to change banking channels and developing technology will increase the reliance on data and security.
“The perfect storm facing the global banking industry continues unabated,” said Robert Bonwell, chief executive officer (CEO) for Europe, Middle East and Africa (EMEA) retail at Jones Lang LaSalle. “However, within the kaleidoscope of increasing regulatory, legislative and legal scrutiny, retail banks face the greatest opportunity of all retail sectors to unlock the power of their real estate networks.”
Key findings of the report include: