Australia-based Bank of Queensland is, reportedly, planning to close some of its bank branches to boost the performance of its retail banking business and reduce expenses.
The branch closures are partly because of customers moving to digital banking, claims the lender.
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With around 180 owner-manager branches and 90 corporate branches, Bank of Queensland did not disclose which of them will be shut, but corporate branches are under scanner due to low on performance.
Bank of Queensland retail and online banking head Matt Baxby said the bank’s network of branches was delivering a lower market share than competitor networks, which could force them to fall out.
"’We have about 4 per cent distribution in terms of points of presence, delivering 2 per cent market share," Baxby added.
"We have a third of the size of Westpac’s network, delivering about a 10th of their market share. So I think overall … we are probably slightly overweight as we stand here today."
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By GlobalDataThe lender is also looking to restructure commissions paid to its owner-manager branch network in 2014 to reduce the risk of loans and to encourage cross-selling.
Additionally, the bank is trying to expand its reach to a broader range of customers through mortgage brokers and Virgin Money business, which it purchased from Richard Branson for $40m in April 2013.
