What are the merits and demerits of localisation of banks?
Banks enjoy some form of synergy staying together in a particular community or location; synergies such as policing, interbank cash movements, location, identity etc. The only demerit in this localisation business is competition, stiff competition.Q: Why would a bank, for instance Zenith or UBA, have three branches in an area 200m radius? A: Well, it’s a different kettle of fish when a particular bank has more than one branch in a particular location. Let’s not forget that every organisation has its own business strategy. While a critic would be quick to condemn the actions of some banks in their siting of branches however proximate, I would beg to disagree a little. The main reason is that our consolidation exercise is peculiar. Now we have in some instances four, six or eight banks fusing into one entity. You would agree with me that in some locations the pre-merged banks had their separate branches before the consolidation. Don’t you think that if the branches were viable, it would
