Advances in branch technology are not being matched across other retail banking channels, increasing the risk of disintermediation as customers become increasingly well serviced by non-banks in the areas of money transfer and purchase.
As routes are developed that offer alternatives to traditional banking products – for example, MasterCard’s recently announced prepaid card that could be used in lieu of a current account – it is crucial that established players take a leadership role in exploiting the potential that IT offers. This means not only ensuring that the plumbing behind channels is operational and connected but that the points of interface for the customer are accessible and attractive.