Bank stores to have decreased down 450 past 3 years… ‘Unmanned store’ to fill decreased point
Cho Eun Guk | ceg4204@ | 2018-01-31 11:07:55
As the non-face-to-face transactions expanded, such as mobile banking services, 450 branches of major domestic banks including Shinhan Bank and Kookmin Bank were found to have evaporated for three years. Especially, major commercial banks are planning to increase the number of unmanned kiosks based on digital kiosks in order to streamline management.
According to banking system on January 30, the number of domestic branches of major domestic banks such as Shinhan, Kookmin, Woori, KEB Han, and Nonghyup Bank decreased from 5178 in late 2014 to 4728 in late last year, appear. Besides, the number of branches and closure of branch offices is gradually expanding from 1.64% (88) in 2015 to 3.46% (176) in 2016 and 3.84% (189) in 2017. The reason that commercial banks are reducing their sales points is that demand for offline branches is falling sharply as more than 90% of bank transactions are made through non-face-to-face channels such as mobile banking. On the other hand, rents and labor costs for maintaining branch offices have increased year by year, and restructuring work, including the consolidation of branch offices, is taking place in order to streamline management.
Especially, the number of branches is expected to decrease more rapidly as major banks expand unmanned stores through digital devices.
Currently, Shinhan Bank and Woori Bank are operating two unmanned stores, respectively, and plans to increase the number of unmanned kiosks based on digital kiosks this year. "A digital kiosk is installed in a place where there is a demand for banking transactions because there is no branch office nearby, and it has a 40% reduction effect on the existing counter business," said Woori Bank official. "As we plan to expand the digital kiosk in the first half of this year, Unemployed stores will also expand in the process."
IBK Industrial Bank of Korea plans to install unattended stores in the second half of this year. Therefore, it plans to benchmark the uninhabited stores that are currently being implemented by the Bank of Japan. Unlisted stores under review by IBK are similar to unauthorized stores operated by Woori Bank and Shinhan Bank. It is a store where customers can handle most financial affairs, from bankbook opening to major consulting business. IBK Industrial Bank of Korea plans to set up unattended stores in areas where there are no universities or branches to eliminate blind spots.
Kookmin Bank and KEB Hana Bank are also considering unauthorized shops. It does not plan to install it right now, but I am going to install it if the demand for unattended stores grows.
In the case of financial sector, the expansion of unmanned shops based on digital devices is expected to accelerate the consolidation of existing bank branches. In fact, digital devices such as digital kiosks are estimated to extinguish more than 90% of the banking work carried out at frontline bank branches.
For this reason, in Japan, digital kiosk-based unattended stores are rapidly expanding, replacing existing offline stores. In particular, Mitsubishi UFJ Financial Group, a leading Japanese financial company, announced that it will unmanned 20% of its stores by 2023, and Mizuho Financial Group is also promoting unmanned stores.
"An unauthorized store equipped with a digital kiosk is becoming more and more necessary because banks are able to trade at any time," a bank representative said. "In order to reduce costs, we can reduce the number of existing stores and replace them with unattended stores.”
By Cho Eun Guk ceg4204@
[ copyright ⓒ The Digitaltimes ]
According to banking system on January 30, the number of domestic branches of major domestic banks such as Shinhan, Kookmin, Woori, KEB Han, and Nonghyup Bank decreased from 5178 in late 2014 to 4728 in late last year, appear. Besides, the number of branches and closure of branch offices is gradually expanding from 1.64% (88) in 2015 to 3.46% (176) in 2016 and 3.84% (189) in 2017. The reason that commercial banks are reducing their sales points is that demand for offline branches is falling sharply as more than 90% of bank transactions are made through non-face-to-face channels such as mobile banking. On the other hand, rents and labor costs for maintaining branch offices have increased year by year, and restructuring work, including the consolidation of branch offices, is taking place in order to streamline management.
Especially, the number of branches is expected to decrease more rapidly as major banks expand unmanned stores through digital devices.
Currently, Shinhan Bank and Woori Bank are operating two unmanned stores, respectively, and plans to increase the number of unmanned kiosks based on digital kiosks this year. "A digital kiosk is installed in a place where there is a demand for banking transactions because there is no branch office nearby, and it has a 40% reduction effect on the existing counter business," said Woori Bank official. "As we plan to expand the digital kiosk in the first half of this year, Unemployed stores will also expand in the process."
IBK Industrial Bank of Korea plans to install unattended stores in the second half of this year. Therefore, it plans to benchmark the uninhabited stores that are currently being implemented by the Bank of Japan. Unlisted stores under review by IBK are similar to unauthorized stores operated by Woori Bank and Shinhan Bank. It is a store where customers can handle most financial affairs, from bankbook opening to major consulting business. IBK Industrial Bank of Korea plans to set up unattended stores in areas where there are no universities or branches to eliminate blind spots.
Kookmin Bank and KEB Hana Bank are also considering unauthorized shops. It does not plan to install it right now, but I am going to install it if the demand for unattended stores grows.
In the case of financial sector, the expansion of unmanned shops based on digital devices is expected to accelerate the consolidation of existing bank branches. In fact, digital devices such as digital kiosks are estimated to extinguish more than 90% of the banking work carried out at frontline bank branches.
For this reason, in Japan, digital kiosk-based unattended stores are rapidly expanding, replacing existing offline stores. In particular, Mitsubishi UFJ Financial Group, a leading Japanese financial company, announced that it will unmanned 20% of its stores by 2023, and Mizuho Financial Group is also promoting unmanned stores.
"An unauthorized store equipped with a digital kiosk is becoming more and more necessary because banks are able to trade at any time," a bank representative said. "In order to reduce costs, we can reduce the number of existing stores and replace them with unattended stores.”
By Cho Eun Guk ceg4204@