A glance at recent retail banking research reports demonstrates the need for a continued but evolving role for the bank branch. As significant numbers of branches, particularly in rural areas, are closing their doors, Age UK has pointed out that while 60 percent of customers regularly bank online, 4 million people are not online at all. Though for most people retail banking is now an omni channel concept, branch closures may have particular impact where internet connections are poor and there are mobile phone blackspots. Add in poor public transport and the impact of such closures will be significant.

Are branch visits going to decline and how important are they? According to Social Marketing Foundation research 63 percent of customers prefer to speak to someone face to face when making a big financial decision. Meanwhile only 23 percent would choose a digital only institution as their sole bank.

In a week in which more branch closures have been announced it's interesting to recall the findings of a 2015 Credio survey of 3000 US consumers that one reason for switching banks was branch locations. 41 percent of those surveyed said they 'chose their primary bank based on ATM and branch location'. Other studies have shown how customers' attachment to the branch is not necessarily related to the frequency of branch visits. Rather customers wanted to know the branch was there when they needed it.

According to CACI research, a typical customer will only visit a branch four times in 2022 compared to seven visits in 2017. However, CACI notes that though it estimates that 87.5 percent of customer interaction will be via mobile in 2022, 'more than a half of the population will still visit a branch' and 'the branch still has an important role to play'.

Accenture's 2016 US report drew similar conclusions. They state 'Most customers expect to go to the branch in the future. Opportunities for human interaction draw them there. Consumers most commonly report that they will go to a branch in the future because they trust their bank more and receive more value when speaking to someone in person'.

So reduced visit numbers, but valued personal interaction and expectation that the branch will still be there when needed. In a time of increasing cost pressures, does a traditional branch meet these requirements and if not what are the alternatives?

The way we view the branch is changing. Rather than a necessary cost of doing business it can be an important cost-effective service delivery channel that enhances customer opinion of your brand and enables customer retention and attraction in an evolving retail banking environment. Correct use of technology enables branches to operate with a smaller footprint and lower operating costs while providing increased opportunities for improved customer interaction.

Rather than eliminating the need for a physical presence on the high street, an omni channel approach provides further opportunities for branches. Data can be used to target branch services to customers via text messages or, as Accenture suggests, via the ATM. Evidence suggests the branch will continue to have an important role. The challenge is to ensure it is 'fit for purpose' in an evolving multi channel environment. At Glory we continue to work with financial institutions worldwide to deliver the branch solutions they require.