For consumers, the evolution taking place in the banking world means cheaper, faster and more convenient banking. Then along came ATMs and we were given the convenience of after-hours banking. Today there is Internet banking, which lets a personal computer take care of our banking needs. And soon, virtual banking will take us a step further as we instruct the bank via our television sets.
Technology is the key driver.
In the past five years, dramatic strides in technology have enabled the different channels of banking to evolve. Ironically, whereas the arrival of the ATM made cash more accessible, with a machine almost on every urban corner, further strides in technology have seen the banks turn away from cash in favour of non-cash alternatives. The move from cash has undoubtedly been spurred by the high cost to the banks of securing and transporting cash. Small wonder then that local banks are going through a major branch rationalisation. Branch closures are particularly prevalent in smaller towns and in over-serviced areas such as the Johannesburg city centre.