Two diametrically opposed views have been put forward concerning the future shape of the banking business. Everyone agrees that information technology will change its shape. For Deloitte, branch banking is so expensive and telephone banking so cheap by comparison – around 40% per customer cheaper – that retail banks will cut the number of branches by 50% by the year 2000. In contrast, Dominic Casserley, director of McKinsey, has argued that technology will be used to maximize revenues rather than to minimize costs, and foresees direct banking services as complementary to, rather than as a substitutes for, branches.
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