Safe eTransactions can reduce the Bank’s Branch physical size

            As the share of eTransactions  vis physical transactions increase for Banks, each Bank has charted its own path to reduce the operating costs.

            Please refer to few sample articles on the web which highlight the approach of Banks in different parts of the world.

Bank branches slowly fading away in neighborhoods

Daily digital banking transactions near £1bn in UK

After Years of Growth, Banks Are Pruning Their Branches

            In India too the share of eTransactions vs Physical Transactions has been on the rise. Refer the following articles.

Rise of the Machines

Impact of E-Banking on Traditional Banking Services

BRANCH BANKING TO VIRTUAL BANKING -UTILIZATION OF DIRECT BANKING CHANNEL IN INDIAN BANKING SECTOR

            In a first of such exercise, Corporation Bank has done a detailed study on the impact of the electronic transactions of its customers and decided to rationalize its physical bank branches size.

            Instead of shutting down or relocating its branches which would have sent a negative signal to its customers, Corporation Bank decided to reduce the size of its bank branches.

            Though a space audit of 932 branches spread over India, Rs30+ crores could be saved during the lease tenure of its bank branches.

            Note that only the carpet area was reduced to make the branch more compact. No customer service delivery activity was affected.