1 per cent of banking transactions are conducted via a branch and that figure is declining. He further noted that banks are currently working with these customers to assist them in this transition to phone and online banking, adding that community groups such as Age Concern and Grey Power also have a role to play in these changes.
On the other hand, according to KPMG’s head of banking and finance, John Kensington, despite the decline in branch closures, banking had never been so accessible to the people. “Yes, the number of physical branches has declined, but the number of substitute ‘branches’ people have access to has increased,” he said. He pointed out that with recent developments, more often than not, a person would need to speak to a banker in person only when they had a problem. Banks have appointed mobile managers for mortgage services too. Even the verification of identity can be done virtually.
Moreover, many big banks have agreed to hold off on closure of rural branches until a banking “hub” trial has been completed. Under this Hub system, several banks work together centred around a group of smart ATMs, where a single banker who oversees the operation shows people how to access the services they need. These hubs have already been trialled in Twizel, Ōpunake, Martinborough, among others.
