Why banks should spend on branches despite increased digital penetration

Though the functions of a branch may have not changed in years, their focus has shifted from transaction to customer retention

Veena Rao is a 35-year-old salaried bank customer who walked into one of its branches in Mumbai to restructure her home loan. “I’m not sure when I visited a bank branch last; maybe over a decade ago to get a demand draft for my university admission,” she recalled. Like Rao there are many who can’t remember when they last went to the bank branch. Perhaps for this reason whenever a new bank outfit opens up in the neighbourhood, we wonder if there is need for one more; why banks should spend on branches. This was the question many had when