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March 23, 2023

50 pc of existing retail bank branches will be obsolete by 2020

A new retail report released yesterday by Jones Lang LaSalle emphasises that changes across the global retail banking environment continue to be driven by political, economic and technological trends. These trends will lead to continued bank expansion in frontier markets, offsetting the search for greater efficiency in developed markets. As a result of Global Retail Banking: key trends for retail estate report, Jones Lang LaSalle predict that as much as 50 pc of existing retail bank branches in the developed world will be obsolete by 2020, as banks assess their space requirements. However, this decline will be offset by increased numbers of retail bank branches in developing countries such as Brazil, China and India. Analysing the trends further, James Brown, Head of EMEA Retail Research & Consulting said: “(…) Excess branch networks won’t disappear overnight, but the trend will be one of a steady run-off as property leases expire. The challenge in this truly multi-channel world will be for global retail banks to actively manage their existing property portfolio and then to identify the right locations to maintain a presence or take new space. We will see far more emphasis on right place, right space and right price”

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