View from City Road: Banking statistics that don't add up
Thursday 04 November 1993
Contrast that with a survey by Andersen Consulting suggesting Britain will bear a quarter of the job and branch losses in Europe. Since others appear more overbanked, the damage does sound rather on the high side.
One possible explanation is that British banks and societies responding to the survey are more aware of the pace of technological change, and particularly the speed of introduction of telephone banking and cash machines.
This certainly fits the facts. British banks have been exposed to deregulation and competition for longer than their counterparts in most of Europe, where financial institutions may be in for a bigger shock than they expect. Indeed, Andersen says the question in the minds of many bankers is whether they are in a sunset industry like steel in the 1970s.
They should not, however, be allowed to overdo the pessimism. Predictions of the end of the branch as we know it in the UK - or anywhere else - should be treated with a touch of scepticism, and not simply because the accepted wisdom in banking is so often wrong. Branches are actually very useful for finding out about customers. There is evidence in the UK and Germany that bad debts rise in proportion to a business customer's physical distance from the branch. They are also a key outlet for insurance sales. There is a risk that closure programmes will go too far, as fashions invariably do in banking.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 Ed Sheeran dedicates song to David Cameron
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Amal Alamuddin: Human rights lawyer's legal chambers forced to upgrade website following George Clooney wedding
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...