Branch bank network structure with electronic transactions considerations

The paper applies an economic model of a competitive market for retail banking services to generate insights into the following relevant questions. Is the cost structure of electronic distribution systems sufficient to justify choosing the kiosk/PC banking distribution strategy? That is, is it reasonable that market pressures and technological advances will allow banks to virtually eliminate branches? How does competition from other banks and non-bank firms affect the choice of distribution strategy? We find that in a wide variety of experiments that banks will retain their branch networks, along with a PC banking capability.