The Anonymous Widower

A New Bank

Years ago, I worked as a consultant for a major bank writing a software system to calculate the cost of the various operations of the bank.  What was interesting, is that a significant part of the cost of transactions such as clearing cheques, standing orders, direct debits etc., was the cost of the buildings and premises.  In fact, when a new branch opened, because of the premises cost, it was a long time before that branch’s costs were down to the average level.

So the suggestion of one of the callers on Radio 5, that banks open branches in areas that are poorly served, although admirable will never happen.  Or only after intense pressure and inducements.

But!

We live in a technological age, with nearly everyone having a mobile phone.  Also about 50% of the population bank on-line and about 70% or more of the population have access to the Internet. 

So any new bank must maximise this technology to provide a service to everyone. 

Banks too, need to introduce more personal service and if customers can’t get to see the bank manager, then the managers should go to the customer.  How many people have ever had a visit from a bank manager?  I rarely have and I’ve dealt in seven figures sums with banks for many years.

Returning to my costings of a major bank.  Small sub branches were an interesting way of providing service in areas away from the main branch.  They have now been replaced by cash machines, but why do we not see such branches in places like supermarkets, hospitals and garages?

Whatever happens, a new bank must innovate and draw on the experience of the past; good and bad.

November 3, 2009 - Posted by AnonW | Business, Finance | Banks