The move had already been initiated before the coronavirus crisis in France, but also in many European countries, and is likely to gain momentum. Faced with the multiplication of online services, health measures and the cost of real estate, banks will increasingly reduce their physical presence and occupy fewer square meters.
The rise of telecommuting
In the banking sector, as in many other professions, teleworking has become the norm for almost two months. Many companies have decided to extend this measure, and banks are no exception. Telecommuting could thus become the norm, at least for part of the week, ultimately reducing the need for office space.
What's more, during the confinement period, the majority of customer appointments were made remotely. While this trend will not remain the majority, it is set to grow. It is therefore highly likely that the percentage of face-to-face appointments, which has hitherto been close to 80%, will fall sharply. Fewer onsite customers means fewer open branches and/or shorter opening hours.
Physical distance rules to be respected
The sanitary rules are strict, requiring significant distances to be maintained between employees, between employees and customers, and between customers themselves. A number of micro-branches, with just three advisors, are too small to comply with these distance rules, which will inevitably prevent them from re-opening.
Many branches had also opened "lounge" areas for customers. Sofas, tables, drinks dispensers: the idea was to emphasize welcome and well-being. Here too, the coronavirus pandemic is forcing banks to rethink their plans, and some establishments are using this space to rearrange offices and increase the distance between workstations.
The development of online services
Some banks, such as Caisse d'Épargne and Banque Populaire, began to sell products that had previously been reserved for face-to-face sales, such as life insurance, via distance selling.
According to a recent BCG survey, one in five French people plan to reduce their visits to branches, or even stop going at all, and use online services.
These new habits have encouraged banks to close branches and reorganize their networks. The reduction in the number of square meters occupied will also enable them to increase their profitability.