According to Sarvesh Sarup, Country Sales & Distribution Head, Citibank, a recent survey showed that customers still preferred human interface in certain areas of banking. So, the verdict was brick and mortar banks will stay on. Adds Sarup that even in the US, physical banks remain a reality.

Sarup says that till the time there's anxiety about financial services, customers will visit the branches for important decisions. That has been the experience in the US too.

Also the older segment of customers, which is a large chunk worldwide, finds it difficult to shift to the technologically-savvy banking operations, he says. Sarup says that even though the younger lot is much more tuned to the technologicaldevelopments in the banking world, they believe in human interface when it comes to taking major banking decisions. Such as choosing the kind of deposit/investment, personal loans, mortgage, etc. Basically, services such as Internet banking and ATMs are delivery channels of the future.

For a long time to come, the new channels will be for routine transactions, and personalised banking for any important banking decisions. On whether bank branches are reducing in number, Sarup says, branches are getting smaller.

Another expert in the areas of banking, Vijay S Mehta, chief consultant, Consult Opportune (India's first consumer banking advisory service), agrees.

On the significance of human interface in banking, Mehta says: ``Human interface in Indian banking is still an imperative aspect for a large section of customers, who are unwilling to change ingrained habits, are not familiar with technology, do not trust electronic banking channels much, and like to visit the bank to further their long-standingpersonal relationships.''

On whether brick and mortar branches will gradually disappear in India, Mehta says: ``India is just not the metropolitan cities. Brick and mortar banking will not cease to exist in the country.'' He adds, that currently no new distribution channel appears to become dominant, as a `multi-delivery' strategy appears to be the way to go. Which means a combination of Internet banking, ATMs, telebanking, branches, home banking, kiosks, etc.

A senior banker, Ujwal Thakar, Executive Vice-President, TimesBank, says that direct channels like Internet banking, ATMs and phone banking are not being introduced at the cost of traditional channels. Rather, the direct channels are ``in addition'' to the traditional channels, he says.

Thakar adds: ``Be it telebanking or responding on the Net, there is always a human at the other end. Therefore, human interface will not go away from retail banking.'' But technology will reduce costs and improve distribution, he says. For instance, a traditionalbranch requires 2,000 sq ft of space, while the new centres need less than a fifth of that. In the end, sums up Thakar: ``The role of the branch staff will reduce from being a transaction processor, to a relationship manager for the customer.''