Almost two thirds of banking industry’s top executives think branch-based lenders will be ‘dead’ in next five years
Bank branches have been disappearing from Britain’s high streets at a record pace in recent years.
But now almost two thirds of the industry’s top executives think branch-based lenders will be ‘dead’ in the next five years, according to research.
A massive 65 per cent of global banking executives believe lenders will no longer revolve around a network of bricks-and-mortar locations by 2026, a report by the Economist Intelligence Unit for financial software company Temenos found.
Closed doors: More than 480 bank branches across the UK will be closed this year
Instead they think new technology, and offering banking services through other businesses such as shops, will be at the core of their industry in future.
More than 480 branches across the UK will be closed this year. This means that, by the end of 2021, 4,343 locations will have disappeared from the High Street since 2015, according to data from consumer champion Which?.
Lenders have argued that it does not make sense for them to keep operating vast networks of branches as more customers flock to online services.
Temenos’s report said: ‘Just under two thirds (65 per cent) of bankers now believe that the branch-based model will be ‘dead’ within five years.’