The Bankwatch

Tracking the consumer evolution of financial services

BofA to Eliminate Wire Transfers from Branches, Moving Volume to Online Banking | netbanker

By co-incidence here is yet another chink in the armour of the branch network. Long ago Jim had the foresight to write what others could not admit to at that time, with the 40 year view of The Demise of Branches. Iin that far-sighted piece Jim aimed at the core raison d’etre amongst traditionalists, account acquisition, and developed potential approaches to offer a better value proposition than ‘just being there’.

In 2006, Banks were in major branch build out mode, to support their market share objectives. The payback period on those branches is extended to say the least. On the other hand, the payback period on branch elimination is almost immediate, but it has to be managed. It is a strategy that is aimed at the growing majority, but services must be made available online for that new majority.

BofA are aiming at a particularly work intensive branch activity – wires – I know and have done them – its a pain, and its work and time intensive. Its the ideal application to automate. Time to knock off those labour intensive branch apps that serve as an excuse to retain branches.

2010 will be the year when we see branches being actively reduced amongst the large banks. What will be interesting is to see to what extent they follow BofA’s lead and ensure the services can be offerred online. In that vein, who will be first to go for cash replacement with electronic purse/ smart card type offers?

Bank of America to Eliminate Wire Transfers from Branches, Moving Volume to Online Banking | netbanker

Beginning this summer, wire transfers will no longer be available in your local banking center…
What it means: When the nation’s largest online bank starts talking about reducing branches and takes steps to eliminate a traditional (and labor-intensive) branch-based service, you have good evidence that branch banking is on the wane.

Thoughts welcome!

Written by Colin Henderson

August 17, 2009 at 21:48

2 Responses

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  1. A new product was released today called Kasasa (http://bit.ly/8Nvkh) that is touted as a game changing national brand that will unite community financial institutions to win the war against the mega banks by delivering a marketing presence and scale that no single community bank or credit union can match on its own. Kasasa comes to life through a mix of innovative advertising including one that features America’s top slam poets (https://www.KASASA.com/news-and-media/advertising) riffing lyrical threads around the theme of “Do you Kasasa?” The campaign lives through advertisements on television, radio, print, and billboards, plus aggressive public relations, social media outreach, community events and captivating gorilla marketing.

    Erik

    August 20, 2009 at 15:12

  2. Thanks for stopping by with that info Erik.

    Colin Henderson

    August 24, 2009 at 18:37


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