Banks can use big data to gain a 360-degree view of customers, even as they lose the personal interaction of branch banking.
"New technology doesn't tend to substitute for branch banking but to complement it, " says Charles Calomiris, a professor at Columbia University's business school.
Wells Fargo and Wachovia have no meaningful branch overlaps, dominate separate areas of the U.S. in branch banking and have similar sales-oriented branch cultures.
Mellon's fee-based businesses namely, managing and servicing wealth and investment, are doing better than its branch banking, with a 18% earnings growth for the nine months ending in September.
Bank of America, one of the most acquisitive U.S. banks of the last 15 years, has nearly reached the legal limits of its ability to grow by branch banking acquisitions.
Despite shedding its insurance underwriting and asset management units in the last year or so, Citigroup continues to operate in a stunning variety of businesses, from subprime mortgage lending and branch banking to investment banking, private equity and securities servicing.
That was right before the housing markets in many parts of the country began an extraordinary boom and also a time when many banks were scrambling to get bigger in consumer finance, attracted by its promise of fat fee income, and scaling back in branch banking, which was considered low-profit and, well, boring.
Down the street a pristine, nearly empty branch of Mexican banking giant Bancomer, devoted to money transfers, sits a few storefronts down from a cluttered travel agent offering transfers under the Orlandi Valuta brand--a subsidiary of Western Union's parent.
Earlier this year, Citigroup bought a controlling stake in KorAm Bank, which increased its private-banking network there from a dozen branches to over 200, while Standard Chartered last month opened its first branch in Seoul dedicated to private banking.
The Consumer Services segment represents the company's branch network, including consumer banking products and services related to residential first mortgages, home equity lines and loans, indirect loans, consumer credit cards and other consumer loans, as well as the corresponding deposit relationships.
And it is interesting that, for him, the fundamental question is whether it is possible to have an effective single code of conduct for a universal bank like Barclays, when the motivations and instincts of investment banking traders and branch managers are so different.
Having used the three-way deal with Allianz to shed their retail banks, Deutsche and Dresdner are once again lumbered with large and, thanks to the fragmentation of the country's banking system, unprofitable branch networks.
It says cash machines, online banking and mobile banking have not replaced the branch, but have just given consumers more choice.
So Johannesburg-based Standard Bank offers AccessAccount, which features benefits of a traditional banking account without having to visit a branch.
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Back when I worked in banking, as the Assistant Manager of a branch, I wore a mask.
It plans to branch out into power generation and services, particularly finance and banking.
M-PESA, launched in 2007, provides banking transactions without the need to visit a bank branch by using mobile phones and 19, 500 agents where customers can deposit and withdraw money, pay bills, purchase airtime and transfer money to other users and nonusers.
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Online banking now accounts for 53% of banking transactions, compared with 14% for in-branch visits, according to research from AlixPartners.
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This kind of nonbank banking reaches rapidly into the hinterlands that have never seen a bank branch or even a teller machine.
Robert Meara, a retail banking expert at consultant Celent, says that the nation's branch count peaked in 2009 and has begun a steady decline.
Speaking at an investor conference Ryan McInerney, chief executive of consumer banking, said the company plans to add 100 branches a year, though staff per branch will fall by 20% by 2015 through "attrition".
Without any proposed capital controls or explicit enforcement measures, the U.S. Markets Security Act of 1997 contains a clear message: The relevant Committees of the Congress -- including Banking, Foreign Relations and Intelligence -- are now watching, even if most in the Executive Branch and the markets remain perilously dismissive of this complicated 21st century security challenge for this country and our allies.
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