The Evolution of Banking

Banking has changed a lot over the last 20 years. Gone are the days when you could only visit your bank between the hours of nine and five, Monday to Friday. The rise of the internet and extended opening hours mean that you can arrange transactions and check your balance at any time of the day or night.

The increased availability of accounts with an online banking facility has been absolutely essential for the lifestyles of today. Working hours have increased across the board, with standard working hours of 8.00am until 6.00pm becoming the norm for the majority of office workers.

Banks have had to change to keep up with demand and improved technology is not the only difference in the way that they work. The whole banking industry has changed significantly over the last couple of decades and they are offering far more financial products than at any time before.

How Banks Have Changed

It used to be that banks worked on a very local level, offering loans and savings accounts solely to customers in their area. With many smaller banks having being taken over by larger national banks over the past few years, this business model has changed significantly.

There are all sorts of benefits to the individuals using the banks’ financial products. They have lowered the costs of banking for many of their customers and transactions take place at a much faster rate than in times gone by. However, there is still a high demand for the personalised service that can only be maintained by staying with a local branch which has the best interests of its customers at heart.

Technology

It is technology, though, that has created the largest change in the banking industry. The widespread use of online banking means that transactions can be completed globally 24 hours a day. Money transfers are almost instantaneous and customers can keep abreast of the exact state of their balance at any time.

Online banking has also meant that costs are significantly reduced as banks don’t need to employ as many people. These savings are in turn passed on to customers, so not only is online banking more convenient, it is also far cheaper for the majority of people.

The move towards technology-based banking is only set to increase over the next few years. The advent of apps for devices such as the iPhone means that soon we will be making transactions using just a mobile phone. These advances will decrease the cost of banking even further for many individuals. However, there is still a lot to be said for going into your local branch and actually speaking to an advisor, at least once in a while.

The reality is that banks today are totally different from those of a couple of decades ago. The majority are now owned by larger, more powerful institutions and this has totally changed the landscape of the banking world. They are able to offer a far broader range of services and products at competitive prices, allowing the average consumer far more choice.

Tags: bank, bank accounts, competitive prices, Banking, branch, majority, online banking, mobile banking

Villages being affected by bank closures

It has been reported recently that many villages in the UK are being affected by bank closures, with many bank branches having closed since the turn of the century. An investigation was carried out by the Campaign for Community Bank Services (CCBS), and this suggested that more than two thousand bank branches had closed since 2000, and this has left many people living in smaller villages stranded when it comes to conducting their banking.

For many of those living in rural areas and small villages there is a particular problem because lack of broadband facilities makes it difficult for them to benefit from other options such as online banking due to lack of internet access. With many bank branches in smaller villages now struggling to stay open, despite profits recently posted by banks, villagers may really struggle to access banking services properly.

A number of major banks are said to have shut hundreds of branches in some cases over the past decade, and Lloyds TSB said to have closed around five hundred branches. It is the branches in smaller areas and villages in particular that are suffering, and many officials are now concerned that vulnerable, elderly, and disabled people could experience real problems if they are unable to travel further afield to access banking services.

An official from Campaign for Community Bank Services, Derek French, said: ‘We are concerned that banks will continue to close quieter branches and concentrate on meeting sales targets in busier, more profitable High Street branches.’  

With banks having been hit hard financially over the past few years there are also concerns that many may focus of closing branches to save money rather than making cutbacks in other areas, which will further impact on the accessibility of services for many consumers.

Tags: consumers, bank branches, small villages, bank closures, bank, derek french, Branch (banking), branch

More job cuts at Lloyds TSB

Despite becoming what was described as a super-bank following its takeover of troubles banking group HBOS, Lloyds TSB has announced a fresh round of job cuts earlier this month, with the announcement that it would be closing all of its Cheltenham & Gloucester branches. Read more

Tags: gloucester, lloyds tsb, lloyds, unrest, job cuts, Financial services, unemployment, branch

Yorkshire Building Society opens 133rd branch

The Yorkshire Building Society is planning to increase its High Street presence by 10% over the next three years, and has recently made progress towards this goal by opening its 133rd branch in Chester.

The branch was opened amidst celebrations, with everything from champagne and white roses to town criers. Customers have already flocked to the branch to open accounts, and in light of the record number of deposits made in building societies across the UK over recent weeks officials have high hopes for the success of this newest branch.

A spokesman from the Yorkshire Building Society stated: ‘As a society, we have never veered from our main objective: to raise funds from the public via savings products that we can then lend on to those who want to buy their own homes. ‘The best way to raise those funds is through a healthy branch network. The public like this setup and I see no reason to change it. It’s not sexy, but in light of recent events at Northern Rock, it has huge customer appeal.’

The crisis with Northern Rock led to building societies enjoying huge rises in deposit levels over a matter of weeks, with worries savers taking their money out of Northern Rock and depositing it elsewhere. According to figures from the Building Societies Association there was a rise of nearly £1 billion in the number of savings deposits made in building societies following the Northern Rock crisis.

One of the customers that turned up for the opening of the new branch stated: ‘I find building societies more approachable and friendly than banks. ‘Although Chester is well banked and has its fair share of building society branches, it’s good to see Yorkshire offering more choice.’

Tom Smith
11th November 2007

Tags: yorkshire, open, society, expand, chester, branch