The retail banking industry is facing significant changes with the advent of online and digital banking. The vast majority of money transactions such as deposits,withdrawals, transfers, credit card payments, etc. (which traditionally occurred in the branch) are now taking place online. This has lead to the question, “Is the branch dead?” The answer to this question is no, but it is changing. Banks are transforming their branches from transaction hubs to spaces where customers can go for complex banking issues, and especially where they can purchase new banking products like loans and investments. While transactions are declining in branch, the branch remains the place where the most revenue is generated, so it remains an important channel that just needs an update to remain relevant. While there is a customer experience part to this, it is more about sales and revenue generation. There is a lot of pressure from the most senior-level at the banks to lower the costs of operating the branches and raise the revenue generated from them.
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