The White Label Branch: The Time is Right   Why the banks need it now   Group profits are at peak levels and the market will demand continued growth but UK retail banking profitability is at best flat. In an increasingly competitive market there is an ongoing need for cost reduction measures by the traditional high street players. All major retail banks have many low/non performing closure candidate branches with falling footfall and low sales potential but closure is an unpalatable option in PR terms for the brand. The Big 4 in England & Wales have a monopoly in 97% of sole bank communities fairly evenly distributed between them and very similar numbers in those with 2, 3 or 4 outlets. Branch footfall is being eroded, partly by growing familiarity with alternative delivery channels: in smaller communities a branded branch cannot survive on only its own market share of branch using customers. Competition from new entrants with lower (or no) branch network cost base will intensify. The new in-branch technology is expensive and difficult to justify in smaller branches having low footfall and/or sales opportunities; similarly the cost of DDA compliance and maintenance of corporate image. Very recent evidence confirms that anything more than nominal closure numbers will provoke substantial public, media and political protest, damaging both to the brand and the sector The Post Office is committed to becoming a significant competitor in the sale of personal financial products, post the Bank of Ireland deal, and can no longer be regarded as a fall-back neutral delivery channel for the main banks. Banks have no control over service standards their customers receive in post offices, nor over the life of the Post Office as an entity. Banks have no viable model to bring banking services to new and expanding communities at a time when government is planning substantial growth. The model is ideal for partnering credit unions and community finance vehicles to advance the government’s financial inclusion agenda, minimising impact on banks’ branded outlets and allowing banks to pay for counter activity on a per item basis without incurring capital cost. Because shared banking improves customer choice, the threat of government intervention, or even legislation on US lines, would be diminished.