Peak Performance Consulting Group quoted by S&P Global on digital banking initiatives

A number of large banks — Citizens, PNC, Chase and others, all with expansive traditional branch networks — are unveiling digital initiatives to reach new customers.

These launches come at a time when interest rate increases have made deposits increasingly competitive. The efforts also follow in the footsteps of other companies that have offered digital banks for years — potentially forcing these incumbents to play defense.

The digital banks also allow banks to solicit deposits from outside their footprint and engage new customers with a full-service relationship without a branch, said David Kerstein, president of Peak Performance Consulting Group.

But Kerstein said consumers who open an account online may eventually want to visit a physical bank branch. A digital bank could inform a company where to expand with physical locations and help optimize its footprint, he said. Branches may figure into PNC’s nascent?digital banking strategy?as the company looks to expand westward into select cities.

Read full article on S&P Global Market Intelligence.