The bank of the future in Belgium is hybrid, study shows

The retail bank of the future in Belgium will be digital but still maintain a branch network, according to a study by Boston Consulting Group (BCG). The hybrid model is the most profitable, the study concludes.

While the digitisation of retail banking forms one of the biggest challenges for the Belgian banking sector, it is now also seen as an opportunity. Compared to their European peers, Belgian banks still have to contend with a heavy cost structure, mainly due to their extensive branch network. By offering more services online, banks can save on network costs and boost their declining profitability, writes Trends. According to the magazine, all banks in Belgium are currently searching for the right balance of digital services and physical offices.

The BCG study, which surveyed more than 2,000 bank customers in Belgium, examined client behaviours and expectations. The results show that 47% of the Belgian banking customers can be described as "hybrid", meaning they visit the bank at least once a year and do their banking online at least once per quarter. About 23% of the respondents hardly use their bank's digital services, preferring to visit the branch office. 26% are purely digital customers, who no longer rely on the office. Another 4% are inactive customers.