Back to the Future-With Highly Visible Branch Banking: Videoconferencing Technology Has Been One of the Key Technologies Underpinning the Current Shift Back to Retail Branch Banking

Beginning of article

When the perceived value of the retail branch network was widely disputed in the 1990s, branch banking went into full retreat. The Australian Prudential Regulation Authority (APRA) revealed that one-third of all available bank branches closed their doors in Australia between 1993 and 2001. Since 2002, however, this trend has been reversed--with more branches being opened than closed--as banks have had a change of heart.

Visual communication, or videoconferencing technology has been one of the key technologies underpinning this transformation. This technology is now emerging from the back office, or conference room, into a 'real time' application in front of a customer.

There has been growing re-acceptance within the industry that bank branch networks are an important delivery channel for the services needed by many customers, and therefore play a key role in increasing the share of assets under management. In announcing strong first-half results, both the ANZ Bank and St George Bank, for example, re-confirmed that they have been investing in 'branches and people' with more bank …