Make sure you have an internet connection because National Australia Bank Ltd. (ASX: NAB) along with the other big banks are closing down their physical branches.
Is this good or bad for the NAB share price?
NAB share price
Banks get ready for a digital future
NAB has announced plans to close physical bank branches in certain areas of the country as more customers prefer to bank online. This preference was accelerated by the pandemic as customers realise the benefits of banking online.
The bank advised it will be recruiting an additional 280 staff to facilitate phone and digital banking services.
Given how convenient it is to bank online, it’s no surprise that 93% of customer interactions are being taken over the phone, by video or online.
NAB is still offering services at physical locations via Australia Post outlets where customers can check account balances, pay bills, and make deposits up to $10,000 in cash, or withdrawals up to $2,000 per day.
One step ahead of ANZ
Australia and New Zealand Banking Group Ltd (ASX: ANZ) has not yet provided its customers with the option to bank at Australia Post outlets. This has left some people in regional communities disgruntled.
According to the Sydney Morning Herald, residents of Mortlake in western Victoria have to travel 40kms to reach the nearest ANZ bank.
NAB remains focused
The closure of physical branches signifies the rapid pace at which banks are evolving. It is encouraging to see that NAB still made physical banking an option at Australia Post outlets.
Customer service remains the key area of differentiation for Australia’s big banks.
NAB is taking the right steps in embracing the digital world, especially after its recent acquisition of 86 400, an innovative fintech company that reduces the time and effort in completing home loan applications.
It’s important to monitor key competitors when evaluating NAB, my colleague Jaz Harrison provides an overview of Westpac Banking Corp (ASX: WBC) here.
