The health crisis has prompted banks to democratize the practice of teleworking, and forced some establishments to reduce the size of their branch network faster than expected. Examples include TSB in the UK, Crédit Suisse and Commerzbank in Germany.
Branch closures accelerate in Europe
The pandemic is precipitating bank branch closures across Europe. In the UK, TSB is planning to cut nearly 929 " teller " positions in its branches. This decision is linked to the accelerating use of digital services. Similarly, British cooperative bank Co-op Bank is set to cut 350 jobs to " adapt to customer usage " and close 18 branches.
The Crédit Suisse banking group is also reorganizing to remain economically viable in the face of changing banking habits. Last August, the bank announced a far-reaching restructuring plan involving the closure of 37 of its 146 branches. This should generate savings of CHF 100 million by 2022.
Finally, in Germany, Commerzbank has decided to close 200 branches, i.e. one in five of its network in the country. This decision could, however, be phased in over the period up to 2023.
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In France, banks have made no announcements concerning the reduction of their networks. However, most establishments are seeing a sharp increase in digital usage and remote relationship solutions. The 10th edition of Deloitte France's " Relations banques-clients " study shows that digital channels (web and mobile) are the most widely used (17.4 times per month, +14%), while the average number of branch visits is less than 1 per month (0.95, -28%). Digital banking is now part of the banks' core offering, and " is no longer a differentiating factor ", says the firm. From now on, the difference between the brands will be in the way they take care of their customers' daily needs, an area in which traditional banks do not particularly shine.
Adopting new practices to cut costs
In order to variabilize and mutualize the costs of their networks, banking groups have an interest in adopting new practices. According to Baudouin Choppin de Janvry, a partner specializing in financial industry consulting at Deloitte France, customers are not averse to the idea of visiting a local center that would bring together several establishments under one roof in order to carry out transactions or speak with an advisor.
Most banks have already innovated. The Caisse d'Épargne Bretagne Pays de Loire, for example, is planning to test the use of independent advisors, partly remunerated by commissions. This is an unprecedented experiment in France.