'Brick and mortar' banks becoming less cost viable


Tribune Business Reporter


Digital banking will drive a "natural" consolidation of commercial banks' branch networks, the Clearing Banks Association's (CBA) chairman warning that "brick and mortar" is becoming less viable.

Gowon Bowe, pictured, told Tribune Business: "Ultimately the cost of what I would call the 'brick and mortar' structure is becoming less feasible in the banking structure. What you are finding is the branch footprint is going to reduce, but not the services. What you will find is a large part of the larger branch networks was really the accommodation of very heavy foot traffic.

"As we move to more digitised activity, you would find that the foot traffic reduces and there will be a natural consolidation. I wouldn't call it a trauma or blunt blow to the industry; it was really more about the reaction to the cost, and decisions had to be made on the ability to afford 'brick and mortar' in some of the locations that would have had very little need for foot traffic and very little ability to recover those costs."

Mr Bowe acknowledged that commercial banks have pulled-out of several Family Islands in recent years, and said: "We are looking at how do we, in conjunction with the Central Bank, move towards a cashless society, and how do we - in the various islands - look at the expansion of the debit card and credit card activity, where persons are becoming more comfortable buying services and merchants are becoming more comfortable as well.

"That is an ongoing dialogue between the clearing banks and this working group that will hopefully provide viable alternatives in some of these locations. which will meet the need of customers and, at the same time, are not requiring unprofitable brick and mortar structures."


bogart says...

SEE.....yinna talking electric banking .....an yinna AINT EVEN HAVE A FINANCIAL CONSUMER PROTECTION AGENCY......IN DA 21ST CENTURY IN DA BAHAMAS.....DA UK DONE HAVE ...THE FINANCIAL CONDUCT AUTHORITY....DA US DON HAV ..US CONSUMER FINANCIAL PROTECTION BIREAU....CANADA...HAS..FCCA FINANCIAL CONSUMER AGENCY OF CANADA......all dis talk bout the rich banks doing dis an dat......and not one scrap of effort to lift yall finger to do anything fer the small black people......SHAME ON YALL...HEAR...SHAME ON YALL...,!!!!

Posted 13 September 2018, 3:36 p.m. Suggest removal

John says...

More than half the businesses on the Family islands don't even take credit cards...the power plant gets burned down..just saying

Posted 13 September 2018, 7:39 p.m. Suggest removal

sheeprunner12 says...

Hope Bowe doesnt end up the same way as Sumner ......... he too full of shit .......... When we have reliable power and internet in these islands, then Bowe can have all the "e-commerce" he wants .......... Bahamians consumers and businesses just do not trust these cards and their crooked add-on costs ........... especially when NO ONE will tell you why these "taxes" and "fees" are being deducted from your bank accounts .......... 18% for credit card and climbing.

Posted 18 September 2018, 3:57 p.m. Suggest removal

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