Offline banks to disappear? Six major banks close nearly 1000 outlets a year, reducing 11500 employees

category:Finance
 Offline banks to disappear? Six major banks close nearly 1000 outlets a year, reducing 11500 employees


At present, the banking institutions are still in the process of adjusting the distribution of outlets. What causes the bank outlets to close down one after another? In the future, will they disappear?

When dealing with financial business, more and more people no longer choose to go to bank outlets, but open their computers or use mobile phones to handle financial business through online banking, mobile banking and other channels. Behind the continuous decrease in the number of bank outlets, the high rate of off counter business is an important reason. The off counter business rate refers to the proportion of the business volume handled by customers leaving the counter in the total business volume of the bank. The higher the off counter rate is, the more customers handle business through the network, mobile payment and electronic self-service channels, and the less dependent customers are on offline outlets.

According to the data released by the China Banking Association, the average off the counter business rate of banking financial institutions reached 89.77% in 2019, an increase of 1.1 percentage points compared with 88.67% in 2018. Seven years ago, the average rate of off the counter business was only 63.23%.

At the same time, the transaction volume of e-banking is growing rapidly. In 2019, the number of online banking transactions of banking financial institutions reached 163.784 billion, with a year-on-year increase of 7.42%, and the transaction amount reached 1657.75 trillion yuan; the number of mobile banking transactions reached 121.451 billion, with a transaction amount of 335.63 trillion yuan, a year-on-year increase of 38.88%; the number of transactions on e-commerce platform reached 83 million, with a transaction amount of 1.64 trillion yuan.

Dong ximiao, chief researcher of Xinnet bank and special research fellow of national finance and development laboratory, said that Internet and information technology provide strong support for mobile banking, intelligent customer service and other service modes. A mobile phone is equivalent to a branch, and more than 95% of retail business can be handled through mobile phone. More and more customers prefer digital and mobile service experience, which makes it difficult for bank outlets In order to meet the needs of customers to obtain services anytime, anywhere.

At present, most of customers go to bank outlets for cash or passbook business. With the increase of online business, the cost of offline outlets has gradually become prominent. According to statistics, a bank branch income includes interest income and wealth management intermediate business income. After deducting the rent, utilities and personnel costs, the remaining is the gross profit. Now, in a better location in a big city, the annual rent can reach one million yuan. If you cant get hundreds of millions of new deposits, its difficult to guarantee a profit.

Although it shrinks rapidly, it will not disappear completely

Does the rapid contraction of bank outlets mean that in the future, they will disappear? Wang Mancang, director of the Finance Department of Northwest Universitys School of economics and management, said that although the adjustment of traditional banking outlets is a trend, it will not disappear completely. Because the value of interaction between offline outlets and customers is difficult to be replaced, especially some small and medium-sized banks are difficult to compete with large banks in terms of popularity and customer acquisition, and outlets are required to contact customers more closely as a physical carrier.

Li Qilin, chief macro researcher of lianxun securities, said that from the perspective of audience groups, the key service customers of bank outlets in the future can be concentrated on two types of people: one is the middle-aged and elderly customers, who have low acceptance and trust on the Internet and e-banking, and are more likely to receive the services of physical outlets; and the second is that high net worth customers with higher service requirements have a higher demand for bank assets Product and service requirements are more diverse, face-to-face communication is easier to convey and understand the needs.

From the point of view of the type of outlets, the community sub branch is the focus of the current bank slimming. Li Qilin said that the community bank has facilitated the life of the surrounding residents and let more people enjoy the basic financial services. However, the construction of some community banks is too rash, and the business is relatively single. If the surrounding service objects are not enough to ensure that they can maintain the balance of profit and loss, it is difficult to continue to survive. Through the intelligent transformation of outlets or the construction of smart banks, tellers should be transformed from operation type to marketing service type, so as to provide customers with good experience.

To pan functionalization, one policy at a time

The intelligence represent the general trend. The novel coronavirus pneumonia is also forcing banks to accelerate the transformation of digitalization. Ms. Wang, who lives in Chongqing, said: in the past, the most troublesome thing was to go to the bank to do the loan business. It may take several times to run the offline outlets to do it well. The later process still needs a long time to wait. During the epidemic period, the bank provided online business, and my materials only needed to be photographed and transmitted, which saved a lot of effort and worry.

In recent years, many commercial banks have launched a variety of online financial services, such as big data, cloud computing, artificial intelligence and other financial technologies. At the same time, we will promote the transformation of outlets to light, intelligent and scene based, accelerate the organic integration of online and offline, improve the radiation capacity and service tension, and provide customers with services at any time, anywhere and in any way.

Shi Yiming, general manager of intelligent risk control, said that artificial intelligence technology can help banks realize digitization as much as possible in the operation process. In the past, the banks face-to-face examination was conducted in offline outlets. For some young customers, such a way of experience is particularly bad. Now we can replace the original on-site face-to-face interview with remote video, micro expression anti fraud, intelligent question and answer, which not only enhances the experience, but also improves the efficiency.

With the advent of 5g era, Shi Yiming believes that 5g has the characteristics of high speed, low power consumption and high security, so that any place can provide financial level services. The proportion of virtual customer service represented by holographic projection will be higher and higher.

In this way, specialized bank outlets will continue to lose weight, while offline scenes of daily life such as coffee shops, tea shops, shopping malls and restaurants will have financial attributes and can provide financial level services. Financial services will be more personalized and convenient in an environment that consumers like.

Dr. Zhang Bo, financial research center of China Post Research Institute, said that according to the survey data of the United States, the total number of bank outlets has not significantly decreased. Although some business has been transferred from offline to online, outlets as an entity channel for bank marketing are indispensable for banks and customers. The outlets improve their service level, innovate business development, collect customer data through intelligence, and provide non-financial functions through lightweight, so as to create a Pan functional network. The bank has also gradually transformed its offline outlets from a thousand points and one side to one point, one policy, and established a reasonable network transformation planning scheme. In combination with the development strategy of the bank, the characteristics of the customer population of the outlets and the resource endowment of the outlets, the banks classified the outlets to give full play to the advantages of the outlets and realize the resource value of the outlets. In the long run, outlets will face a painful adjustment process, and those banks that are good at seizing the opportunity and striving to change themselves to adapt to the market environment are expected to seize the opportunity and obtain better development. Li Qilin said. Source: Science and technology daily, author: Li He, editor in charge: Wang Xiaowu_ NF

Dr. Zhang Bo, financial research center of China Post Research Institute, said that according to the survey data of the United States, the total number of bank outlets has not significantly decreased. Although some business has been transferred from offline to online, outlets as an entity channel for bank marketing are indispensable for banks and customers.

The outlets improve their service level, innovate business development, collect customer data through intelligence, and provide non-financial functions through lightweight, so as to create a Pan functional network.

The bank has also gradually transformed its offline outlets from a thousand points and one side to one point, one policy, and established a reasonable network transformation planning scheme. In combination with the development strategy of the bank, the characteristics of the customer population of the outlets and the resource endowment of the outlets, the banks classified the outlets to give full play to the advantages of the outlets and realize the resource value of the outlets.

In the long run, outlets will face a painful adjustment process, and those banks that are good at seizing the opportunity and striving to change themselves to adapt to the market environment are expected to seize the opportunity and obtain better development. Li Qilin said.