Banks must rationalize their distribution networks, by making more efficient use of information and communication technologies. The number of bank branches rose in the last decade, despite the sharp increase in the share of telephone and on-line banking services.
An overlapping of distribution channels may be justified in part by differences in banks’ customer base and commercial strategies, but efficiency gains are certainly possible and necessary. Non-strategic assets need to be sold off. In the immediate, cost-cutting must be relied on in order to avoid severe imbalances in profit and loss accounts. Beyond the short term, however, this will not be sufficient.