Bank branches will be “as common as a Blockbuster video store in a few years’ time”, former Barclays CEO Anthony Jenkins told CNBC on Monday, adding that his prediction about mass closures of physical banks is happening faster than he thought.
Jenkins, who now runs a fintech (financial technology) firm called 10X, warned banks of the impact of not keeping up with technological innovation. The ex-Barclays boss, who left the bank in July 2015, said artificial intelligence (AI) will have a profound impact on banking that could mean branches become obsolete.
In 2015, Jenkins predicted that banks could close half of their branches and workforce in 10 years. But this trend is happening faster than the fintech expert initially thought.
“I mean the trend is moving even faster than I predicted in the U.K., now we’re seeing 15 percent of branch traffic falling per annum. That’s a huge effect,” Jenkins told CNBC in a TV interview at the Money 20/20 conference in Copenhagen.