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Urbanisation helps: the top 85 cities in emerging markets generate 10% of global GDP, so a small branch network can make a big difference.
Its small branch network, however, limits its ability to earn fees from selling products to retail investors.Although Shinsei has been putting great effort into its investment-banking business, it faces tough competition from bigger rivals such as Goldman Sachs, Citigroup and Nomura Securities.
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With small branch networks and relatively few people in the formal economy, this was too much.
America's Citibank and BankBoston, and Britain's Lloyds have had small branch networks in the region for much of this century.
The other thing we'll see is smaller branch networks, unless banks recognize the shift in consumer behavior that is going to drive bank/brand experience from this day forth and start to think out of the box.
A small branch of the network inside the blue rectangle was zoomed out for illustration purpose.
Citigroup, whose branch network is smaller than Bank of America's, closed two branches in the poorest areas and opened three in the wealthiest.
Todd Maclin, the head of Chase's commercial bank, will take on additional responsibilities overseeing the bank's branch network and small-business banking operations.
Another option is to follow the Netherlands' ING, which when taking over Vysya Bank, a small bank in Bangalore, folded its existing branch network into its new business.
Nicholson said job losses were not on the cards at Halifax as the size of the branch network – 600 branches – was smaller than the 1,600 run by Barclays.
This has little to do with providing a branch network.
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Justyna Jupowicz-Kozak
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