Westpac closures indicative of major changes in banking, experts say _ stuff. co. nz money laundering explained

Westpac closures indicative of major changes in banking, experts say _ stuff. co. nz money laundering explained Bank customers are being told to make the most of their local branches – their days could be numbered. It has been revealed that Westpac is planning to close 19 of its branches, mostly in regional New Zealand, which could result in the loss of up to 70 jobs. Commentators say it could be just the start of another wave of major change in the banking industry. Banking expert David Tripe, of Massey University, said branches’ days were numbered.

“In-person banking is going to end whether we like it or not, it’s just a matter of how long it takes,” he said. “In 15 years’ time we might have

a third of the number of branches around the country.” His colleague, Claire Matthews, said she was not surprised to see Westpac’s move and it was possible that other banks would follow suit.

“If they are not getting the level of profitable business through, people applying for loans or doing the stuff that earns the banks money, they will not be able to continue with some branches.” Retail consultant Chris Wilkinson said banks and other “non-retail” businesses were not seen as ideal in town centres. In some countries non-retail outlets were legislated against, he said.

In parts of the United States, the amount of street frontages that banks could take up was restricted. “Once upon a time, they were high traffic generators.

Money laundering us These days they’re a lot less of a traffic generator and if anything, just an advertisement for the brand.” Banks were also being pickier about where they were, he said. The wealth of the local economy was probably a factor, as was staff security and the cost of refilling ATMs or handling cash. “These will be aspects that are affecting a lot of businesses now and when it comes to it, you start thinking you have to make some quite cathartic decisions.

” Customers were also more relaxed about doing business remotely, so branches were not so vital, Wilkinson said. “People are buying diamond rings over the internet now, really high-value items.

Money laundering com People are buying expensive vehicles over the internet. How does money laundering work Consumers’ perceptions have changed dramatically.” Mortgage lender HSBC did not even have a physical presence in New Zealand.

“The model of remote banking is very real and I really think the presence that banks have is really now all about advertising and trying to stay front-of-mind with consumers more than anything else,” he said. In 2013, ASB became the first of the big banks to reach a tipping point where more than half of all online sessions were taking place on mobile devices. Other banks quickly followed suit.

What is money laundering in india Now, more than three quarters of ASB’s personal customers are using digital channels to interact with the bank. ANZ’s head of digital and transformation, Liz Maguire, said there had been a huge change in what customers wanted from their day-to-day transactional bank.

“Customers are choosing the convenience of online and mobile banking, which gives them unheard of levels of control over their finances 24 hours a day,” she said. “Today, the average ANZ customer uses mobile banking one or two times a day, and visits a branch only two times a year.

“Mobile devices, like with many industries, have changed customer expectations of speed and convenience. “Most people don’t want to keep branch hours, or drive to a branch to do their banking.

“The number of customers using internet banking has increased 147 per cent between 2013 and 2016, while the number using ANZ goMoney has increased 427 per cent. “Five years from now I’d like online and mobile banking to have evolved to the point where customers can undertake any day-to-day transaction they want on their computer or mobile device, and it will be completely predictive and intuitive.

“It will be an intelligent interface that will enable customers to personalise their banking in a way they can’t today.” Matthews said it was possible that mobile banking apps could be developed further to cater for customers who wanted to talk to someone in person. “You could talk face-to-face in a video-conferencing environment.

International money laundering cases You don’t need to be sitting across the table.” Credit cards might also become less prevalent as more options became available, such as debit cards that worked for online purchases and use overseas.

More people would probably start using their smartphones as digital wallets, too. Sam Shuttleworth, PWC’s banking and capital markets sector leader, said smartphones had become an indispensable part of life for many people. “Who would have thought you would have used your mobile phone as a map, torch, camera or to access digital information 15 years ago? “As a result, using the traditional credit card could diminish as a physical payment mechanism, but the underlying financial product of a revolving credit facility for consumers to use for discretionary spending will continue.” John Kensington, KPMG’s head of financial services said the Westpac closures were probably a one-off event. “Banks look at where they have branches and work out whether they are at the point they can continue to make money there.

” He said if there were a number of competing banks in a region, the closure of one would lead to a number of its customers shifting their business to the others. In 10 years’ time there would still be bank branches, he said, but customers would put pressure on banks to act more quickly and offer services “a click away” when necessary.

But, some bank services would always be a better fit with online apps than others, he said. “Some things people want to go into the bank to do, such as a large or complex loan or replacing a credit card. Money laundering methods I don’t think this is the beginning of wholesale closures.

” He said banks had never been able to turn a channel off – customers can still use cheques or an old bank passbook. Tripe and Matthews said one of the biggest hurdles for the banks in the shift to virtual banking would be how they overcame the need to prove they had adequately verified customers’ identities. Anti-money laundering legislation requires a set level of customer due diligence. Site: http://www.stuff.co.nz/business/money/83128980/Westpac-closures-indicative-of-major-changes-in-banking-experts-say