Targeted Branches

• Small (often part-time) outlets, usually a geographic monopoly or duopoly.
  (Selected from a universe of c 1100 locations)
• Small town and suburban locations where 2, 3 or even 4 branches compete but where falling footfall, low sales and technology costs dictate a viability review; acquisition and merger situations affecting a branch’s business customer base can remove the profitability of a branch at a stroke.
  (Selected from a universe of c1900 locations)

In 1997 Bristol University (Leyshon and Thrift) identified the ‘domino’ pattern of bank branch closures whereby soon after the first bank in a location as described above bites the bullet and closes, others follow. CCBS case study file of post 1998 closures evidence that the pattern continues.

Numbers

• In England & Wales each of the Big 4 are in c1600/1700 centres.
  (Compare to Abbey National 750 and Halifax 800.)
• Potential closure numbers are not for CCBS to quantify here but provision of a neutral shared branch alternative, in addition to further development of virtual delivery channels, would remove most of the issues that arise.

Savings

• If banks choose, in the next economic downturn for example, to make significant network reductions to achieve the substantial direct and indirect operating savings and release capital, the availability of a neutral shared branch alternative would neutralise customer opposition.

Additional Benefits

• Avoidance of some redundancy costs by transfer of undertaking.
• Reduces reputational damage and political / legislative threats.
• Opens access to third party subsidy in non viable locations.
• If successful in operation it opens up the prospect of more widespread separation of responsibility for money transmission (Outsourcer) and relationship/sales (Bank).