Banks' Branch Network Development Strategies in a Digital Environment

Abstract

In this paper, I research how Hungarian banking managers develop branch networks in light of Self-Service Technologies. The digital revolution has caused a technology turbulence that revolves around self-servicing. This trend entails that the values of brick-and-mortar also has to change in order to service customers. To understand these topical changes, and how banks think about their branch networks, I have researched the topic by interviewing banking managers. I have found three results. First, sustaining innovations are more common. Second, service innovation varies from small improvements to process innovations. Third, banks put different amount of emphasis on the two aspects of resilience: personalization and costefficiency – even if both are key pillars for building resilience. As managers think differently about personal service, self-service terminals and fully automated branches, the research also points out managerial implications.