Welcome to the flashy 'bank of the future' branches

The flagship branches of the world's top banks have come a long way from the iron grilles and potted plants of old.

To compete against online-only rivals and attract a new generation of customers, branches are installing sleek interiors and hi-tech gadgetry.

The reason is clear: after years of relying on branches to drive retail revenue, European banks expect such networks to supply only 62 per cent of sales by 2020 from today's average of 81 per cent, Equinox Consulting says.

Banks, especially those still nursing losses from the financial crisis, are under pressure to cut costs and are balancing the need to pare back branch networks by sprucing up selected outlets.

But branches are still the first point of contact for many customers and are still the primary location for product sales like mortgages, new accounts and insurance, underlining the importance of upgrading them for a more tech-savvy generation.

Flashy "bank of the future" branches mixing gadgetry with design have been opened by BNP Paribas in Paris, Barclays in London and Deutsche Bank in Berlin - at an estimated cost of €5 million (HK$52 million) each.