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NEWS STREAM

Australian Cricketer Phil Hughes Dies At 25; DJI's New Drone Inspire 1 Could Be Gamechanger; Investigation Into Death Of Two Teenagers Girls Ruled Suicide; The Future Of The Physical Bank

Aired November 27, 2014 - 08:00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KRISTIE LU STOUT: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream where news and technology meet.

Now a freak accident on the cricket pitch takes the life of a prominent Australian athlete. Philip Hughes has passed away at the age of

25.

Plus, the shocking findings of an investigation into the deaths of two girls in India.

And,what's that noise? Well, here's a drones-eye view of the Hong Kong news room. And prepare to go hands on with the very latest in the

technology with an industry leader.

Now the death of Australian cricketer Phil Hughes has brought on an outpouring of grief in the sporting world and beyond.

Now Hughes was playing in a match at the Sydney cricket ground on Tuesday when a ball struck him in the neck behind his left ear. He was

taken to hospital where doctors induced a coma to try to save him, but his injuries were too severe. He died on Thursday.

Now Hughes would have turned 26 this weekend. And Australians are taking the loss especially hard.

(BEGIN VIDEO CLIP)

TONY ABBOTT, AUSTRALIAN PRIME MINISTER: The thought that a player in his prime should be killed playing our national game is shocking and

sobering. We should be conscious of the risks that our sports people run to give us the pleasure that they do.

JAMES SUTHERLAND, CEO, CRICKET AUSTRALIA: Without doubt, he was a rising star whose best cricket was still ahead of him. He was a hero to

kids around the nation, particularly those in the region around his hometown of Maxville (ph) in New South Wales.

(END VIDEO CLIP)

LU STOUT: As you heard, Hughes was from New South Wales. He was born on a banana farm in 1988. And he made his test debut against South Africa

in 2009 and became the youngest cricket to score back to back centuries in a test match. You can see Hughes celebrating here.

Now one of his most famous performances came against England last year. Hughes was tipped to return to the Australian team next week against

India.

Now Hughes's death resulted from the type of freak accident that could happen in cricket, but rarely does. And CNN's Anna Coren is following the

story from here in Hong Kong. She joins us now.

And Anna, let's first talk about the tributes pouring in. How is Australia and the cricket community reacting to the death of Phil Hughes?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, there's just been an outpouring of grief and shock. And I don't think it's an

overstatement to say that, you know, Australia and the cricket world is in mourning.

Here you have this young batsman, 25-years-old. As you say, he was about to turn 26 on Sunday, who was taking to the cricket pitch as he has

1,000 times. And here he is struck by this ball, which freakishly hits him, you know, below the ear on the neck just below the helmet, hitting the

artery, splitting it, causing massive bleeding on his brain.

He collapsed on the field. He had to be resuscitated. He was taken to St. Vincent's hospital in Sydney where they performed emergency surgery.

They placed him then into a medically induced coma. They even removed part of his skull to relieve the pressure. But tragically his condition did not

improve and he passed away earlier today.

As you heard from James Sutherland, the chief executive of Cricket Australia, you know, the best of his cricket was yet to come. He was

somebody who was admired. He was just so popular. And now I would like to read some tweets from fellow cricketers.

I'll start with Sachin Tendulkar, the famous Indian batsman who wrote, "shocked to hear about Phil. Sad day for cricket. Deepest condolences to

family, friends and well-wishers. Rest in peace."

And then from Kumar Sandakkara who is the world's top batsman from Sri Lanka. He wrote, "Rest in peace, Phil. Your life, though too brief,

was touched and inspired so many. You'll be sorely missed. Our prayers are for you and your family."

And ten of course from Ian Botham, the former English cricketer, "a very sad day for the world of cricket. So sorry for Phil Hughes and his

family. Spare a thought for Sean Abbott."

And it's interesting, Kristie, that he mentions Sean Abbott. Here of course was the 22-year-old bowler who delivered that fateful ball.

LU STOUT: And such a terrible loss. And our thoughts go out to him, his and his family Phil Hughes and his passing.

Anna Coren reporting live for us. Thank you, Anna.

Now Hughes he was, as Anna was reporting, wearing a helmet when the accident took place, but as he swiveled to play his shot, the ball somehow

missed it entirely. He was struck below the ear. And doctors say the impact caused what they described a massive bleed into the brain.

Now questions have now been raised about the sport's safety and what can be done to avoid another tragic accident in the future.

And to discuss this and more, Alex Thomas from CNN World Sport joins me now live from London. And Alex, the death of Phil Hughes has been

raising a lot of concerns, a lot of questions about cricket equipment and helmets. Do you think it could change safety in the sport?

ALEX THOMAS, CNN WORLD SPORT CORRESPONDENT: I think it will lead to changes in the design of helmets. I think that safety debate will now be

shelved for the next 24 hours, 48 hours possibly just because of the rawness of the emotions surrounding this.

Before we know Philip Hughes had passed away, we got in the managing director of Masuri, the company that made the helmet that Hughes was

wearing. His name is Sam Miller. He was very emotional, too. He knows Philip Hughes is a top cricketer who wears his equipment. And he is

concerned about trying to improve safety in the future. There's no way Sam would have come in today.

But let's show you a clip of what he said to me yesterday about why the helmet didn't stop Philip Hughes from being killed.

(BEGIN VIDEO CLIP)

SAM MILLER, MANAGING DIRECTOR, MASURI CRICKET HELMETS: The reason that Phil was hit in his relatively unprotected -- and that across pretty

much all cricket helmets that are available on the market today. something that would definitely have helped Phil would have had to be a

whole lot more coverage and whether that's even possible while the helmet is still usable and giving the player the freedom of movement he wants, we

don't know. It's not been done before. We need to look at it and see if it's possible.

(END VIDEO CLIP)

THOMAS: So we know that there is real debate about safety and the health of athletes in all sorts of sports. The NFL have had all sorts of

problems with concussion. And they're not the only sport with that. They wear helmets there. And we've seen it in Formula One as well with

tragedies happening to Michael Schumacher, althought that was while he was skiing, and Jules Bianchi and F1 driver earlier this year.

It is impossible to legislate for all sorts of occurrences in sport, Kristie. But cricket, when the time is right, will certainly be looking at

the safety of their sport.

LU STOUT: Yeah, I mean, some sort of investigation is needed to somehow look into how to mitigate these sort of head injuries that result

from this lack of equipment protection.

And also, Alex, you've been looking into the story of the bowler, Sean Abbott. And we understand he's been utterly distraught. How is he doing?

How is he coping with the loss?

THOMAS: Yeah, because as Anna Coren just said to you he's only 22- years-old. And remember, this was a match during which Philip Hughes was injured between his former team, the State of New South Wales and his

current time South Australia. So Abbott was actually a former teammate of Hughes and a friend as well.

So you can imagine, if you've just bowled a ball that's normally innocuous and you've killed one of you best friends, just simply

unimaginable, isn't it, Kristie. And we know that Sean Abbott went to the hospital where Philip Hughes was being treated, spoke to his sister and to

the Australia cricket captain Michael Clarke. We can only imagine how inconsolable they all must have been, really. Clarke was very emotional

when he read out a statement from the family in a news conference a little bit earlier today.

But Abbott has been given all the counseling and support he possibly can by the local cricket authorities and by cricket Australia as well,

Kristie.

LU STOUT: Yeah, absolutely devastating. A sad day for cricket, a sad day for sport. Alex Thomas reporting live from London, thank you.

And Alex will be back in just over 30 minutes from now with more on the life of Phil Hughes.

Now, the Taliban are claiming responsibility for a suicide attack in Afghanistan. At least five people were killed, dozens were injured.

Now Britain's foreign office confirms a British civilian and an Afghan national working for the British embassy were killed.

A car packed with explosives detonated as our convoy of foreign embassy vehicles was passing by.

Israel says it has broken up a large terror plot by Hamas that included attacks on a football stadium, trains, and other civilian areas.

Now Israel's security agency says it arrested at least 30 suspects, but those being held are said to have been operating in the West Bank while

receiving orders from militant leaders in Turkey.

Now you're watching News Stream. Still to come on the program, police here in Hong Kong prepare themselves to prevent a repeat of Wednesday night

clashes in the district of Mong Kok.

Also ahead, a calmer night in Ferguson, Missouri three days after a grand jury decision sparked violent protests.

Also ahead, taking flight, a new generation of drones is hitting the sky, so how can you get your hands on this new gadget. We've got more on

that later in the show.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong you're back watching News Stream.

Now in India, federal investigators say that the two teenaged cousins found hanging from a tree back in may were not murdered and gang raped as

previously claimed. They say the girls aged 14 and 16 took their own lives. This happened in India's Uttar Pradesh state. An dtheir death

sparked international outrage over crimes against women in India. now we heard details from India's central bureau of investigation during a news conference a short time ago. And Sumnima Udas has more on

that. She's tracking the story from the capital New Delhi and she joins us now.

Sumnima, how did investigators reach this new conclusion?

SUMNIMA UDAS, CNN INTERNATIONAL CORRESPONDENT: Yeah, Kristie, the central bureau of investigation, which is the highest investigating agency

here in India says they reached this conclusion based on 40 forensic reports. They took over this case in June. They had many reports from the

medical board here as well. And they say the main thing is that there was no male DNA found on these two girls at all, on their clothes.

Also that the lie detector tests that were conducted on both the accused and the family members when they conducted those tests on the

accused it appeared that they were not lying, whereas the family members were lying.

They also inspected the bodies, of course. And they say there were no sins of stress and that there were no crime marks.

Now if you remember just six months ago, the local government had released an autopsy report. And in that, they had confirmed that these two

girls had been raped, gang raped, and also murdered by hanging.

Now when reporters during this press conference asked the CBI why this discrepancy in the reports, the CBI said the people who conducted the

original tests were not professionals and also that there was a lot of blood found around the genital areas of the -- at least one of the girls

and that could be why those investigators thought that they had been raped, Kristie.

LU STOUT: The discrepancy in these reports are very, very puzzling. What has been reaction to this ruling? Is there a sense of disbelief?

UDAS: Well, this happened just -- this was presented just about an hour ago, so we're still waiting for reaction. But the chief minister the

former chief minister of this state of Uttar Pradesh, has already said that she does not believe these reports, she says. The CBI has acted in haste

and that someone needs to look into this again, whereas the local goverment, the ruling government right now has said that -- that they

basically demanded an apology from the political parties, from the media, saying that they had been maligned and that the media has been proved

wrong.

Whereas the family members of the two girls, they say they also of course don't believe those CBI reports and they want to take this to the

supreme court and also to the Prime Minister Narendra Modi for justice.

LU STOUT: And Sumnima, I remember you went to the village in the immediate wake of the death of these two girls. And while you were

reporting there, the women of the village said that they were scared. Why did they feel so vulnerable?

UDAS: This is a very remote part of India, Kristie. And as -- in much of these sorts of areas, the society is very patriarchical, women are

often dominated by the men there. And even though CBI today said that cost did not play a role in this, when we were there the family members kept

saying that they are from a lower caste and the area is dominated by a higher caste and so of course that's why they said they felt particularly

scared.

But you can just imagine the scenes when this entire village woke up in the morning around 6:00 a.m. to see these two women hanging there in the

middle of the village practically from this mango tree for 12 to 15 hours they were hanging there, because the villagers would not let the police

remove those bodies.

So, you can imagine, you know, an entire village seeing this and the kind of impression that might have made on these -- on the women there.

LU STOUT: A very, very grim story indeed.

Sumnima Udas with the latest on it. Thank you so much for your reporting.

Now Hong Kong police, they remain on guard in the volatile district of Mong Kok after pro-democracy protesters tried to regroup on Wednesday

night. Thousands of people gathered near a major road that had been cleared, ignoring police calls to disperse. Now authorities say the more

than 100 people have been arrested since Tuesday, including student leaders Joshua Wong.

Now in a tweet today, the activist calls on supporters not to surrender saying, quote, "we still have a chance to battle once more."

Now with barricades down in Mong Kok, there are two remaining protest sites in Hong Kong. As Andrew Stevens explains, it's unclear how long

these camps will survive.

(BEGIN VIDEOTAPE)

ANDREW STEVENS, CNN INTERNATINOAL CORRESPONDENT: Less than 24 hours after the main protest site was cleared by police here in Mong Kok, it's

very much back to business as usual. In fact, there's very few indications that this part of Hong Kong was actually occupied, a tent city, if you

will, for almost two months. The only indication, you see, are some red tape and a much heavier police presence.

But it doesn't mean the protests here in Mong Kok are over, they're just moving to the side streets around the main protest area.

This was the scene just a few hours ago as hundreds of protesters clashed with police who are trying to clear the streets around that main

protest site. Several people were detained in these confrontations.

But this morning, it's a much more different scene, very quiet, police fear, though, that the protesters will continue to come back in the evening

hours. And as a result, local media are saying that more than 6,000 officers are going to be deployed on these streets at least until Sunday to

stop the protesters trying to reoccupy. And this isn't even the main protest site.

This is.

This is a city, a tent city in the financial heart of Hong Kong -- the main protest site.

And as you can see hundreds and hundreds of tents here.

And as yet, not one injunction has been approved to start clearing this area. And when they are approved, it's still going to take quite some

time to get them all cleared.

Now the students say they will continue to protest and they will protest until they are arrested. But for many, the end may now be in

sight.

Andrew Stevens, CNN, Hong Kong.

(END VIDEOTAPE)

LU STOUT: From the maker of the iconic phantom drone comes this, the new Inspire 1. But is it a gamechanger for the industry? We'll take it

for a test fly next on News Stream.

(COMMERCIAL BREAK)

LU STOUT: You may have never heard of DJI, but you know their drones. The (inaudible) created flying machines so iconic, even Cartman from South

Park has flown them.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It can fly like a quarter mile away from whoever is controlling it. And it can take video of the entire town right to your

phone. Don't touch the propellers.

LU STOUT: After the success of its Phantom drones, the firm has launched a new, more upscale model. With the Inspire 1, DJI is out to

further expand its market for commercial drones. I talked to DJI's Michael Perry about the new drone.

MICHAEL PERRY, DJI: It's like a marriage between form and function. So on the one hand, it does look very cool, but on the other hand, the

small chassis in the middle is aerodynamic and it's also lightweight so that it can carry all this complex technology in a really efficient way.

It's also got this motor servo inside that folds the wings up. So while it's in the air, the camera can rotate 360 degrees without getting

any other parts of the machine in the way.

LU STOUT: Who is the target market for the Inspire 1 drone?

PERRY: So, the Inspire 1 actually bridges our two main sort of platform series. So with the Phantom, we had a very easy to use platform,

so it's just ready to go out of the box. with our more professional series you were able to get the high quality imaging, but you need a lot more

experience to get it set up and get it in the air.

This combines the ease of use with a lot of the professional features of our larger system.

LU STOUT: So this is a so-called pro-sumer (ph) drone.

How much does it cost?

PERRY: So, the final pricing has not been released yet, but we're looking around $3,000.

LU STOUT: OK, so for around $3,000, whether you are a professional or a consumer hobbyist you could use it right out of the box.

But a lot of policymakers around the world aren't catching up. In fact, the reason why we have to fly this in our news room is because we

have to wait for weeks here in Hong Kong just to get the government OK to be able to fly it outside.

Are you talking to policymakers around the world about rules and regulations for flying drones like this?

PERRY: Absolutely. And it's a big challenge, because everybody wants the same thing, which is opening the skies to innovation while also keeping

them safe. So it's a big challenge on the behalf of regulators.

At the same time, we are seeing a lot of really positive movements towards creating an integrated air environment. In Australia and New

Zealand, for instance, they've set out some very clear rules of the road. So do this, don't do that. If you do something that's against the rules,

then you get fined.

We're hoping to see more clear regulations from all of our different partners around the world.

LU STOUT: There's the issue of free flying, issue of safe flying practices and also the issue of privacy. And recently it was another DJI

drone that was used to fly and go into Apple headquarters top secret, the new building that's being built in Cupertino. What is DJI's stance on

privacy and the use of commercial drones?

PERRY: So these systems were clearing designed for creativity. So allowing people to get a new perspective on the world. So, that's kind of

the thought process behind every new imaging technology, whether it's Google Glass, telephoto lenses or instant film. When you have that sort of

new innovation in technology and imaging there is the concern about privacy.

But there's a combination of the regulatory side in terms of what air space it belongs to who. And then also a matter of social etiquette. What

are the situations that are proper and improper to use that? We see that already developing with these systems.

LU STOUT: I find it remarkable that the maker of these drones, DJI, it's a Shenzhen-based company. But it's not widely recognized as a Chinese

brand like Lenovo or Huawei or Xiaomi. How were you able to brand DJI without branding itself as a Chinese drone maker, or a Chinese tech firm?

PERRY: Well, we don't necessarily think of ourselves as a Chinese company. We think of ourselves as an international company. We have

offices in the U.S., Japan, Germany, all over the place. And I think that really reflects our team, which is from all over the world and also

approach into the market which is to develop first abroad and then also domestically.

LU STOUT: Michael Perry there of DJI.

Now some drone operators might bristle at the idea of increased regulation o the suggestion that you might need a pilot's license to fly

what is, in some cases, just a modern version of a toy helicopter.

But a new report from the U.S. Federal Aviation Administration highlights the potential danger from drones. Now according to reports, the

FAA says 41 pilots reported seeing drones during flight in October. Now that was a huge jump from reported sightings between February and April.

And in September, the New York Times reports three pilots at New York's La Guardia airport reported a very close call with the drone as they

prepared to land.

Now the FAA is expected to release these new regulations soon.

Now you're watching News Stream. And still to come on the program, Ferguson, Missouri is waking up after a third night of protests. And the

situation appears to have calmed after unrest earlier in the week. We'll have a live report next.

And it is Thanksgiving in the United States, but some travelers have yet to make it home. How a monstrous storm is affecting millions across

the northeast after the break.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream and these are your world headlines.

Australian Cricketer Philip Hughes has died two days after being hit by a ball during a match.

Now he had been in a medically induced coma since the accident and would have turned 26 on Sunday.

Now Britain's foreign secretary says a British civilian and an Afghan national working for the UK embassy in Kabul were among five people killed

when their vehicle was attacked in the Afghan capital. Dozens of people are injured. The Taliban are claiming responsibility.

North Korea has revealed that the younger sister of supreme leader Kim Jong un is taking on a new role as a senior government officials. Now Kim

Yo-jong and her brother both attended a tour of a cartoon film studio in Pyongyang earlier today. A new job posting was made public in an article

about the studio visit.

In Ferguson, Missouri, a third straight night of protest was markedly calmer after two days of unrest Now public outrage peaks on Monday after a

grand jury decided to charge officer Darren Wilson for fatally shooting unarmed teenager Michael Brown.

Now let's get the very latest from Ferguson now from our Ana Cabrera. And Ana, it is now Thanksgiving in America, what is the mood there in

Ferguson three days after the grand jury decision?

ANA CABRERA, CNN CORRESPONDENT: Well, this morning it's quiet, it's peaceful, it's cold outside, maybe that's in part why many of the

protesters chose to stay indoors overnight. A much different scene last night compared to the last couple of days. There were only two arrests

compared to the dozens in the days that proceeded. And there were no damages last night. So that is some good news, perhaps a turning point in

the protests here.

But the angst, the tension, it still remains here in this community. You know, it wasn't just over Michael Brown's shooting and Officer Darren

Wilson's involvement in that. But it was a flashpoint, this case, for a much deeper issue of concern here regarding how law enforcement treats

minorities.

And what we're hearing from the protesters who are still here and residents in this community is their reaction to a recent interview of

Officer Darren Wilson who is now speaking out for the first time. And they say what they're hearing, and his lack of remorse, is proof that what they

are seeking to change still hasn't come.

(BEGIN VIDEOTAPE)

CABRERA (voice-over): Demonstrators near the iconic arch in downtown St. Louis stand united amid the firestorm of frustration generated by

Officer Darren Wilson breaking his silence.

GEORGE STEPHANOPOULOS, ABC NEWS: Are you feeling any remorse?

OFFICER DARREN WILSON, FERGUSON POLICE DEPARTMENT: Everyone feels remorse when a life's lost.

STEPHANOPOULOS: You have a very clean conscience.

WILSON: The reason I have a clean conscience is I know I did my job right.

CABRERA: Michael Brown's family once again overcome with grief, knowing their son's killer faces no charges. They spoke to legal analyst

Sunny Hostin.

SUNNY HOSTIN, CNN LEGAL ANALYST: Officer Wilson said that he had a clear conscience about what happened that day. If he had to do it again, he

would. What's your response to that?

MICHAEL BROWN SR., MICHAEL BROWN'S FATHER: He's a murderer. That's what that tells me.

LESLEY MCSPADDEN, MICHAEL BROWN'S MOTHER: I hope the Lord will have mercy on his soul.

CABRERA: In the community, an equally strong reaction.

UNIDENTIFIED MALE: The interview was really a slap in the face, to hear this-- this man say that he had a clear conscience. The smug arrogance

is what I think startled most people.

CABRERA: Wilson's words the root of compounding anger in a community still reeling from violence and looting.

Ray Sumner works on behalf of shop owners to secure this badly damaged strip mall in Dellwood.

(on camera): This property has been hit three times?

RAY SUMNER, WORKING TO SECURE STRIP MALL: Three times down there and three times here. And he keeps coming back, but how many times are you

going to take, you know, the abuse from it before you say enough is enough?

CABRERA (voice-over): The owner of this beauty supply store spent $150,000 rebuilding after looting in August. It burned to the ground Monday

night.

(on camera): How does this community move forward?

UNIDENTIFIED MALE: We've all just got to stick together and let the justices do what they're going to do (ph). Just come together as one.

(END VIDEOTAPE)

CABRERA: Now, this community is emotionally broken, it's physically broken. I mean, just look at this burned down gas station behind the

images like this, the devastation really is scattered all over town here.

So it's going to take months if not years for this community to recover from all this and rebuild. It could take even longer, Kristie, for

the community to heal.

LU STOUT: And as the community there struggles to heal, what next for Officer Darren Wilson? I mean, could he face a federal probe or a wrongful

civil suit for wrongful death?

CABRERA: There are two federal investigations that are still ongoing regarding this case and this community. Darren Wilson is the center of a

civil rights probe in the shooting death of Michael Brown. Also, a federal investigation looking into the much broader issue of police conduct

involving minorities in this region. Those are ongoing. We don't have a timeline on when those will wrap up.

But we've heard from legal analysts is that it's looking unlikely that there will be charges brought, or an indictment brought in those cases.

But it is getting some people in this community hope that perhaps some stronger action will be taken. And beyond that, we know Officer Wilson

does have a plan to resign from the police department, his lawyer telling us it's not a matter of if he will resign, it's a matter of when. And

they're working on some negotiations as far as that goes right now, Kristie.

LU STOUT: All right. CNN's Ana Cabrera reporting on the aftermath of that decision made earlier this week. Thank you very much indeed for your

reporting, Ana.

Now families across America, they are celebrating Thanksgiving Day. And this year, those who manage to make it home for the holidays, they have

a lot to be thankful for. Wintry weather left thousands of people stranded on one of the busiest travel days of the year. Hundreds of flights were

canceled, thousands more delayed by a so-called nor'easter. Now the upside is it should be a nice day weatherwise for parts of the country that saw

the worst of the storm on Wednesday.

Now that goes for New York where a Turkey Day tradition is about to get underway. I'm talking about the annual Macy's Thanksgiving Day Parade.

It is set to start in less than 30 minutes.

Millions line the parade route every year to see the various floats and big balloons make their way down the streets of Manhattan. And

millions more watch from home.

Now this is News Stream. We'll be back after the break.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now in the past, managing your money could only be done by going to the bank. But with today's technology it's increasingly done digitally.

So, what's to become of the brick and mortar bank? Well, Richard Quest investigates in this week's Tomorrow Transformed.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN INTERANTIONAL CORRESPONDENT: There was a time when handling your money meant popping down to your local branch to do a bit of

banking. Today, much of that bank fits into the palm of our hands.

A click here and we check our balance. A few swipes and money is transferred anywhere in the world.

Taking a picture can deposit a check.

Across the financial world, these services are being offered digitally. And consumers like them, which begs the question, what happens

to those expensive branches? Interestingly, they might have bright prospects ahead.

The future of banking might take us back into our local branches as traditional banks look for ways to make their physical space as enticing as

the virtual one.

EVE CALLAHAN, SVP COPR. COMMUNICATION UMPQUA BANK: The branch model is outdated and not relevant any longer. We're looking to create a

different kind of bank, one that offers all the products and services of a large bank, but delivers them with the real community engagement and the

service of a great retailer or hospitality company.

QUEST: Oregon-based Umpqua Bank have adopted what they call the store concept for their 364 branches. It's modeled after retailers like The Gap

and The Apple Store. The goal is to attract customers with a more comfortable, a more welcoming experience.

CALLAHAN: We recognize that consumers are looking for physical as well as online and mobile. They want to be able to engage with the company

in a way that's convenient for them.

QUEST: Umpqua's store in San Francisco is the latest evolution of this concept. Want information? View it on their catalyst wall instead of

a brochure. Need a meeting room? Rent one of theirs at no cost. Even if you just want to place to have a coffee, put your feet up and use wi-fi,

the Umpqua doors are open.

ABDUL SANGER, UMPQUA BANK: There's no pressure that you're not a customer with us. So we welcome them regardless if they have a

relationship with us or not.

VIRGINIA KELLY, UMPQUA BANK CUSTOMER: We still do our banking online, but we come here because of the community, because of meeting the people

that we see when we come here.

QUEST: And that's the key. Bankers rely heavily on face-to-face relationships to offer financial products and services. So, they're

offering new enticements to lure internet and mobile customers back into the branch.

Banks like Barclays, Chase and Citibank have all created these new branches with that very thought in mind, trying to capture the new banking

consumer.

CALLAHAN: How companies come up with a model that creates a truly integrated customer experience, I think those companies are going to be the

organizations that really win in the future.

QUEST: How fascinating, digital and physical coexisting and thriving in the banking world.

(END VIDEOTAPE)

LU STOUT: And that is News Stream. I'm Kristie Lu Stout. And World Sport is next with more on the death of Phil Hughes.

END