LONDON, July 16, 2012 /PRNewswire/ -- A new retail report released today by Jones Lang LaSalle emphasises that changes across the global retail banking environment continue to be driven by political, economic and technological trends. These trends will lead to continued bank expansion in frontier markets, offsetting the search for greater efficiency in developed markets.
The report, entitled Global Retail Banking: key trends for retail estate , identifies that changes in global retail banking will be fuelled by increasing customer demand for innovation, flexible service capability and banks actively managing their brand's presence in a retail environment.
These drivers will result in retail banks making substantial changes to their established branch networks in developed markets. As a result, Jones Lang LaSalle predict that as much as 50% of existing retail bank branches in the developed world will be obsolete by 2020, as banks assess their space requirements. However, this decline will be offset by increased numbers of retail bank branches in developing countries such as Brazil, China and India.
Robert Bonwell, CEO EMEA Retail, Jones Lang LaSalle explained:"The perfect storm facing the global banking industry continues unabated. However, within the kaleidoscope of increasing regulatory, legislative and legal scrutiny, retail banks face the greatest opportunity of all retail sectors to unlock the power of their real estate networks. New retail formats and new technology offer diverse options for those looking to drive efficiency of legacy branch portfolios, enter new markets or increase their competitive advantage. The challenge is to ensure that accelerating retail bank real estate change remains a priority and gets the attention it deserves." Key findings of the report include:
- Retail banks increased focus on "multi-channel"; with banks focussed on getting the right physical presence in the right place, supplemented by mobile and internet banking services.
- Increased customer segmentation; focussing efforts on which services to provide to whom, where and how.
- Hi-tech experimental branches; with 24 hour access to call centre staff through video conferencing and other technological developments, and a move to mimicking customer-centric retail environments.
- More attention to data storage requirements; increased online and mobile transaction volumes