29 / 62
0
20,000
40,000
60,000
80,000
120,000
140,000
160,000
180,000
200,000
220,000
-5%
0%
10&
15%
20%
25%
30%
5%
Philippines
Indonesia
India
China
Taiwan
Malaysia
Thailand
Japan
Australia
Hong Kong
2012
2013
2014
Growth rate %
Branch Numbers
Growth rate %
Strong growth will continue to be
recorded in India, China and the
Association of Southeast Asia Nation
(ASEAN) countries. In line with this,
the number of retail bank branches
is expected to increase over the
next few years. As a result, it can be
expected that real estate costs will also
proportionately increase. More muted
growth is expected in developed
countries such as Australia, Hong Kong
and Singapore, while the population
of Japan is forecast to decline. It is in
these countries that we expect the size
of bank networks to moderate.
Population composition
Technology adoption remains
somewhat stratified among the
di¥erent demographic cohorts. Studies
have shown that Generation Y (Gen
Y) and Millennials (classified as those
born from 1977 onwards) are more
likely to be adopters of electronic
banking technology. For this cohort
a large component of their banking
activities is conducted remotely via
apps and the Internet. Looking towards
the older generations, the proportion
of banking activities conducted via
new technology declines, especially for
Baby Boomers (born 1946-1965).
There are several reasons for this:
lack of familiarity with the new
technology, a preference for face-to-
face interactions, and the need for
more complex financial advice. Baby
Boomers, though, hold most of the
deposits and assets being held in
banking instruments, and therefore
remain key customers of banks. For
this reason, banks must continue to
meet their needs, which at least for
the time being, includes in-person
interaction within branches.
Longer term strategies
The true value of the bank branch over
the long-term remains unknown. For
example, while Millennials currently
conduct much of their banking
activities remotely, it is unclear
whether this will change to a more
face-to-face setup as they seek more
complex advice on larger and more
financially significant transactions.
Notwithstanding this, given current
trends, it is apparent that while the
role of the physical branch remains
relatively secure in the near-term, the
monopoly it once held has been, and
will continue to erode.
BRANCH NUMBERS IN ASIA PACIFIC, 2012-2014
Source: The Asian Banker
2
2
“ATM and branch networks continue
strong growth in Asia’s Emerging
Markets”
http://www.theasianbanker.
com/updates-and-articles/atm-and-
branch-networks-continue-strong-
growth-in-asian-emerging-markets
29