In spite of the increasing success of internet- and mobile banking, research shows that both consumers and business owners still value face to face contact with their banker.

Various organizations point out that at the moment there are still enough branch offices. Will this remain the case, or will more and more offices close down and will the digitally inept become the victim of the digitalization of banking?

A European survey performed by TNS NIPO in 2007 shows that 65% of the respondents prefer online services, but 53% still appreciate being able to speak directly with an employee. Ideally, the convenience of internet banking is seamlessly combined with the personal interaction found in branch offices.

Reasonable distance
So were customers bothered by the fact that over half the existing offices in the Netherlands closed down between 2001 and 2006, as indicated by the Center for self employed retailers (Vakcentrum voor zelfstandige ondernemers in de detailhandel)? “Not at all,” says Michel Noordermeer, spokesperson of the Netherlands Bankers’ Association (Nederlandse Vereniging van Banken/ NVB). “The decrease in the number of branch offices stabilized in the following years and 99% of all households in the Netherlands still have a branch office within a 5 kilometer radius. The vast majority of consumers don’t feel that accessibility is a problem.”

Noordermeer’s story is confirmed by a survey performed in 2007 by the Dutch National Forum on the Payment System (Maatschappelijk Overleg Betalingsverkeer/ MOB), the Dutch Association of Netherlands Municipalities (Vereniging van Nederlandse Gemeenten/ VNG) and the Dutch Rural Community Association (Landelijke Vereniging voor Kleine Kernen/ LVKK).

According to this survey, there is no evidence of any problems with the reachability or accessibility of banks. Both for consumers and businesses, bank offices are located within a reasonable distance. In other cases Internet banking, call centers and ATMs are viable alternatives.

Monitor every three years
Noordermeer is confident about the future. “Banks will always strive to stay in touch with clients. Obviously, they want to maintain their customer relationships.” B. den Uyl of the Dutch Consumers Union (Consumentenbond) agrees, but does not rule out that problems will rise in the future. “Fortunately, the NVB has opened a special mailbox where people can report problems with reaching branch offices (bereikbaarheid@nvb.nl). Additionally, we monitor every three years how well banks can be reached, together with the NVB, an association for the elderly (Algemene Nederlandse Bond voor Ouderen/ ANBO) and an organization for the visually impaired (Viziris). If we find that there is a problem, we will report it and help find a solution.”

Although there is in general no problem with the spread of offices across the country, there are still small villages without a branch office. The elderly, disabled and people without an Internet connection often seek out the help of friends and neighbours to get money or accompany them to an office in the next village. Those who can, revert to Internet or telephone banking, although there is still a group of people that find Internet banking to be unsafe. Area-specific solutions, often established by banks together with municipalities and local interest groups, are usually well received.

Where will this lead?
J. Bouwman of the ANBO concurs. “Examples are setting up desks in existing shops and retirement homes, mobile offices in the form of a bus that travels around smaller communities, delivering money to people’s homes, special taxi services, teaching people to do their banking via the Internet, or transferring accounts to banks that do have branch offices in a particular town or community.”

Bouwman does see potential problems when branch offices close down and a desk is set up instead. “Where will this lead? Is the next step just having an ATM? And what will the impact be of the mergers like the one between Postbank and ING? When their Internet banking sites change, will the elderly still be able to find their way? Nobody knows what the future brings and I’m certainly not pessimistic at this point. I don’t think government regulation is necessary, healthy competition in an open market will force banks to sort these things out themselves.”