Change in UK Bank Branch Networks: A Customer Perspective

Branch networks evolved to attract relatively cheap retail de- posits through the convenience of branch locations and branch-based payment systems. Traditionally, they provided a highly effective mechanism for administering, collecting and de- livering cash and helped to promote an extensive range of associated lending and ancillary services. However, the import- . ance of branch networks is only tenable provided that theconditions which determined their historical position continue to apply. The most important of these conditions are that the market continues to respond to it and that it will remain the basis for existing and emerging patterns of competitive behaviour. With this consideration in mind and against a background of un- precedented change in the financial services markets, the article attempts to assess the future validity of branch networks by obtaining the opinions of customers on a range of important issues currently confronting banking institutions with compre- hensive branch networks.