Original text here from Patrice Bernard (LinkedIn)
Contrary to Northern European countries, Spain maintains a high density of bank branches. However, a trend towards closures is beginning to emerge, to the extent that CaixaBank now feels compelled to introduce a replacement service, at least for cash distribution in rural areas.
For instance, with its some 4,000 outlets, the bank has a population coverage eight times higher than that of Nationwide, now considered the densest network in the United Kingdom. But cultural habits differ, and, notably, the drastic reduction from 6,500 branches in 2015 has led to a perception of neglect in rural areas, which customers do not take well.
While in England, the last remnants of local banking are fading away (Lloyds has notably announced the dismantling of its mobile vans, which until now served underserved areas), CaixaBank, less experienced in this process, is trying to reassure its users by promising easy access to cash, often a fundamental need in small towns and villages.
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In practice, through a partnership with the postal service, its customers—especially among the 900,000 people without a local ATM or branch—can now request the delivery of 60 to 500 euros in cash, delivered to their home by their postal worker, with a simple phone call. This service, covering the entire national territory, is charged at cost price, which is the same as the postal delivery fee (still 7.15 euros per transaction).
This approach, claiming to support financial inclusion, highlights the ambiguities of banking desertification. It shows a discrepancy between the assertion that human contact is essential for navigating complex transactions and its replacement, when physical access is eliminated, by merely offering one of its basic functions. It seems to disregard individuals, especially seniors, who are not comfortable with online tools and are relegated to becoming second-tier customers.
This is a far cry from the promises of maintaining local contact made two years ago to the same demographic. Indeed, those lucky enough to live within a reasonable distance of a branch, according to their means of transport, will continue to enjoy the services they demand... but those too far away are left to fend for themselves. The transition from traditional brick-and-mortar banking to the "digital" bank of tomorrow remains a precarious endeavor, and no one has yet found the perfect formula.
