Q. Which type of banking system focuses on expansion through branches?- Published on 16 Feb 17
a. Internet Banking
b. Unit Banking
c. Branch Banking
d. Consumer Banking
ANSWER: Branch Banking
Branch banking is engaging in banking activities at facilities away from a bank's home office i.e. branches.
Branch banking allows a financial institution to expand services to areas outside of the home location.
This can be a more cost effective approach as not all locations are required to offer the same levels of services as the home location, allowing smaller branches to provide key services while larger locations can provide the additional services.
Financial innovation such as internet banking, ATM etc., will greatly influence the future of branch banking by reducing the need to maintain extensive branch networks to service consumers.
SBI is the leading bank in India when it comes to number of branches and ATMs.
The bank has over 17,000 branches with more than 27,000 ATMs.