The end for glass divides

A report by Datamonitor indicates that the new-look branches could become a reality as early as 2004, as firms realise the importance of the local bank for generating business.

They say that new branches would have self-service stations for customers as well as facilities for internet and telephone banking.

The traditional glass divide between the customer and cashier is also set to disappear, being replaced with a more open-plan look with staff who can walk around.

Customers could also be served as soon as they walk through the door or be helped while standing in queues.

Bank branches continue to be more important than the Internet or call centres in terms of business generation and customer usage. Christine Skouenborg, Datamonitor

Datamonitor, the business information group, said it was also likely that non-banking services such as estate agents could be included in these new style "bank shops".

And branch staff would no longer simply be expected to process transactions but also offer advice on a range of different products. This could mean retraining staff or replacing them, leading to possible job losses, the report suggests.

Dotcom boom

The group expects nearly one in five branches throughout Europe to be transformed by 2004 with the first redesigned banks being in affluent areas before spreading further afield.

The future of banking?

Christine Skouenborg, of Datamonitor, said: "During the height of the dotcom boom, the widely held expectation was that the advent of the Internet... would spell the end of bank branch networks.

"Branch functions would gradually be taken over by internet, call centre and ATM channels, delivering cheaper and more convenient products to customers.

"Today, the picture that has emerged is decidedly different from what was expected. Bank branches continue to be more important than the Internet or call centres in terms of business generation and customer usage."