Chinese banks enhancing direct banking channels to cater to increased demand
Although 60% of domestic banking customers are shifting to more direct banking methods, most would still want access to physical branches. May 22, 2013 | Baron LaudermilkUnlike highly mobile-centric Asian countries, such as Singapore, South Korea and Hong Kong, where banks attempt to slash banking costs by either introducing smaller branches or doing away with branches altogether, Chinese banks have continued to build new branches across the country, while investing significantly in their respective direct banking systems. According to a recent survey from Accenture, less than a quarter of the Chinese population has completely switched over to direct banking methods, with this figure being lower than most developed Asian countries. While 19% of Chinese bank customers still depend solely on branches to conduct their banking activities, 60% are shifting to more direct banking methods, though most would prefer to use bank branches. Chinese bank customers are shifting to direct banking Figure 1. Future use of branches and direct banking methods in China Albert Chan, senior executive, Accenture, said that 19% of Chinese customers still depend on bank branches because they have either not tapped into modern technologies, or still prefer the human touch, with many preferring face to face interaction when going about their banking activities. Chan mentioned that this population typically comprises those aged 50 and above, but should be diminishing over the years. Given the long queues in Chinese banks, more than 21% of Chinese customers have completely switched to direct banking, with potential for further growth, as more than 60% of the Chinese population look to shift more to direct banking methods, but have not done so just yet. Banks in China are aware of the need to develop their direct banking channels to prepare for increased demand for more sophisticated services, as the younger generation increasingly taps into mobile devices and social networking tools in their daily l... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
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