By: Adham Bahgat

Adham Bahgat — Mon, 16 Feb 2009 21:48:52 +0000

Branchless Banks would eventulaly prevail if they put customers first. Recent financial meltdown is heavily challenging the traditional banking model especially on the corporate side, over 60% of world population are under 30yrs old, this the mobile generation and internet savy and they breathe convenience. Banks on other fronts will refrain from investing in expensive branch assets

By: Thanks boys

Thanks boys — Fri, 01 Feb 2008 07:27:15 +0000

Hello people58deeb41c1b303680b58c9d491bd93d3

By: ozrisk

ozrisk — Mon, 06 Nov 2006 02:02:15 +0000

Colin,
A couple of observations from an Australian POV. There are two banks that are moving aggressively in the branchless area here – ING and the local subsidiary of the UK bank HBOS (locally, BankWest). Both are doing well – from very different start points.
ING, starting from almost nothing several years ago, have made big strides off the back of two things – a great advertising campaign (featuring Billy Connolly) and very aggressive pricing of the deposit products. I do not know what sort of profit they are making on this product, but the margins must be low as they are pricing it close to base rates.
BankWest is also doing well – but I am limited in what I can say here for other reasons.
BankWest has a strong branch presence in Western Australia, reflecting its roots, but the strategy to move into the rest of the market is largely branchless.
Again, the main driver is the aggressive pricing of the deposit products, occasionally even beating the ING rates.
Essentially, this business model is working nicely – provided you can demonstrate the value to the (potential) customer. As you cannot compete on service, price must be the driver.
.
As a note on the post itself – two of the pictures appear to be missing.

Comments on: Can an "Internet only" bank work? or ….. Can a branchless bank work?

By: Adham Bahgat

By: Thanks boys

By: ozrisk