Major lender to axe branches as originations fall

by Diana Aqra18 Jul 2013
A major lender has announced it will consolidate around 200 retail banking branches amidst lower expected originations.
 
PNC Bank’s president and CEO Bill Demchak said in a conference call yesterday that the company will be able to mitigate an expected dip in origination by staying retail operated and managing its capacity with strategies like consolidation. 
 
The bank began consolidating February of this year, and has already consolidated 100 branches, said spokesperson Marcey Zwiebel. 
 
Zwiebel said industry research has indicated more consumers are using online and mobile technologies to do their banking, reducing the need for some of the bank's locations.
 
While the bank claimed originations were set to fall, PNC’s volumes were up 11% to $4.7bn for the second quarter and 30% since 2Q2012.

COMMENTS

  • by Steve Greenberg | 7/18/2013 9:32:53 AM

    As a professional mortgage trainer and coach I don't find the fact that originations have declined since an increase in rates. Most companies and/or originators are not adequately trained in the art & science of selling. Rates motivate most borrowers - when it should be the selling skills of the originator.

  • by JOHN EDWARD | 7/18/2013 10:08:08 AM

    PNC IS NOT AN AGRESSIVE LENDER AND SHOULD STICK TO ITS BRANCH OPERATIONS AS THEIR OVERLAYS ON ORIGINATIONS WILL PREVENT THEM FROM BEING A FORCE IN AREAS OTHER THAN THEIR BRANCH OPERATIONS.
    THEIR HISTORY SHOWS A PATTERN OF GOING INTO A MARKET AND THEN PULLING OUT.

  • by Bruce Forge | 7/18/2013 10:45:52 AM

    Right about that Steve. Although in 40 years of doing this sort of thing, notice that selling is easier when rates are falling. Same borrowers don't then want to refi again when rates head back up. But, best referral sources for me are the folks I've told not to refi because this would hurt them. Interest is one cost. Time is another, and unfortunately, one not often considered.

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