Changes in the banking sector in 2020: decrease in both ATMs and branches

At the end of the third quarter of 2019, there were 213 bank branches in the country, and at the same time this year, 196. During the same period, the number of ATMs dropped to 25, to 1,046.

As Eivilė Čipkutė, president of the Lithuanian Banking Association, told Delfi, the main reasons for this decline are the changing habits of banking customers and the transformation of financial services.

According to data from a representative population survey commissioned by the Association in September this year, electronic banking is the most popular banking service – around 80 percent. Of the surveyed population indicated that they regularly use electronic banking, 47 percent. Respondents: the bank’s smart app, at that time only 5% mentioned visits to a physical branch. surveyed.

The activities of financial service providers are also affected by the demographic situation, population declines in the regions, and technological development. The country’s financial market participants and authorities agree that modern, non-monetary payment and service systems have priority in the development of financial infrastructure. Due to all of these factors, customer service has been actively moving into the electronic space in recent years.

On the other hand, financial services market participants follow different strategies: there are companies in the market that successfully cooperate with clients without a single physical unit, and those that nurture and strengthen their existing network, while implementing modern digital solutions. she said.

During the year, the number of employees remained unchanged: at the end of the third quarter of 2020, 7,529 people worked in banks.

At that time, payment card readers increased by 3,668, to almost 62.5 thousand.

“The growing number of card readers illustrates the aforementioned development of digital technologies. Digital services are becoming more common and popular due to convenience, speed and security, so the development of the infrastructure required for Non-cash payments are becoming more and more in demand. This year, the regular trends in the popularity of electronic tools have been strengthened by the coronavirus pandemic, which has adjusted consumer habits in various fields, “said E. Čipkutė.

During the year, the number of clients in the country’s banks fell by 146.5 thousand, to 3.036 million. (a person can be a customer of several banks), and the number of payment cards increased by 780,000 to 3,149 million, according to LBA data.

“Regulatory changes have created additional incentives for banks and consumers to close dormant accounts and abandon outdated bank cards. This phenomenon is most noticeable in the statistics of large banks.

Furthermore, the trend in question can be attributed to competition in the financial services market. According to the LBA, the payment card market is saturated, therefore, with the population in decline in Lithuania, the growth of the number of cards is unlikely ”, commented E. Čipkutė.

Works once a week

Swedbank spokesman Saulius Abraškevičius said that in December, the bank had 54 customer service units in Lithuania.

“As the need for customers to physically visit the bank’s branches decreases, their number is optimized. This year, the Zarasai branches and the Panorama shopping center in Vilnius were closed. In Kalvarija, the activities of the bank branch have been reorganized in such a way that a bank employee comes to the branch once a week, if necessary.

It must be said that the existing divisions are constantly being updated and modernized, we offer various innovations to our customers. In October this year, the bank’s branch on Savanorių avenue in Vilnius moved to new modern facilities. It is equipped in accordance with the latest customer service culture guidelines. We pay close attention to the comfort of our customers, we seek to ensure that residents are offered smart self-service tools and are served even faster, more conveniently and flexibly. At the beginning of next year, we will invite customers to a completely renovated unit in Panevėžys ”, taught S. Abraškevičius in Delfi.

Opened a new headquarters

Sonata Gutauskaitė-Bubnelienė, a Board Member of SEB Bank and Head of Retail Banking at SEB Baltic, noted that it currently has 23 financial consulting departments in Lithuania, compared to 27 at the end of 2019.

“At the end of the summer, we opened the most modern service branch in the country at the bank’s new headquarters in Vilnius. Here we pay a lot of attention to advising and educating clients on how to use banking technologies and services in the electronic space, we serve private and commercial clients, we pay a lot of attention to children and young people.

Considering that this department, where we brought together experts who advise clients in key areas, was geographically close to other bank branches located in a similar location, we connected adjacent branches in Vilnius to the new Client Advisory Center, where it is more convenient for customers. customers consult live, “he said.

The interviewee added that customer behavior changed particularly drastically during the pandemic: residents and businesses alike began to make even greater use of technology and remote (digital) services, which are available 24 hours a day. , and much less frequent visits to bank branches. year fell by more than 50 percent.

Open in Riverside

Giedrė Blazgienė, Sales Manager of Luminor Lithuania, said that the number of physical branches had decreased by one during the year.

“At the end of the third quarter of 2019, the bank managed 15 branches and 2 meeting rooms (branches where customers can use electronic banking terminals and meet with a bank employee by prior arrangement). Thus, it had 17 physical units.

In the third quarter of this year, the bank managed 12 branches and 4 meeting rooms in Pasvalys, Telšiai, Ukmergė and Marijampolė. So there are 16 physical units, ”he said.

G. Blazgienė recalled that this year Luminor opened a new branch in the Vilnius Paupis neighborhood.

“When it comes to future plans, Luminor has no plans for major changes in the near future and will continue to seek the most efficient and customer-friendly solutions to serve them,” he added.