CITIBANK is determined to prove that the number of branches a bank operates in Hongkong does not always reflect the amount of business it handles.
Mr Tim Kelley, Citibank's senior vice-president and general manager of global consumer products in Hongkong, said despite having only 26 branches in the territory - about three per cent of the total - the bank now had 16 per cent of the credit card market, six per cent of deposits and 4.5 per cent of the mortgage market.
''I believe the number of branches will become less and less important in commercial banking,'' he said, adding that services such as automatic teller machines and telephone banking would make branch visits less of a necessity.
''In the future, the only reason to go into a branch will be to do cash transactions or consultative things.'' In fact, Citibank has no plans to expand its branch network in Hongkong because of high real estate prices.
Mr Kelley said that in the future Citibank might follow the route taken by companies such as Cathay Pacific and locate some back-office operations in areas outside Hongkong, such as Shenzhen, to reduce costs.
Citibank, which claims to be the first bank to offer telephone banking in Hongkong, is convinced the service will become an increasingly popular option for time-starved consumers.
Mr Kelley said while consumer use of its 24-hour, seven-day service was not widespread, it compared favourably with other cities in which Citibank offered telephone banking.
