<img height="1" width="1" src="https://www.facebook.com/tr?id=820791394708431&amp;ev=PageView &amp;noscript=1">
Mythbusters-Logo-Design-infographic-1

Myth

PHYSICAL BRANCHES ARE BEING REPLACED BY DIGITAL BANKING

Some financial institutions are starting to wonder if they even need have branches anymore. With fears that COVID-19 will greatly decrease their regular traffic, that new generations want to do all banking online, or that more modern competitors will continue to take over the market.

After all, it is true that the number of branches in the US decreased by more than 1,700 in the past 4 years. (Wall Street Journal analysis of federal data)
Artboard 2-1
MythOrFact
Artboard 3 copy 6

​45 % of Americans visited their bank or credit union branch at least once within 30 days for personal banking services.
(Bankrate Survey)
Artboard 3 copy 5

59% of clients still bank with traditional retail banks and credit unions. In contrast, only 3% used digital-only services without physical locations.
(Market Force) 
Artboard 3 copy 4

1 in 4 clients said they will not even consider a bank or credit union that doesn’t have a branch near them.
(Biz Tech Magazine)
Artboard 3 copy 3

Chase has more than 5,000 branches and more than a million people go through those branches in a single day.
(Financial Brand)
BustedSign-1

The shift in the banking industry to provide more digital channels to bank with will impact your branch network strategy, but that doesn’t mean you should get rid of your branches. Instead, this transition calls for financial institutions to be very strategic with the type of spaces they build and why they are building them spaces. 

 

BRANCHES OF THE FUTURE

 

Artboard 3 copy 2

MICRO BRANCHES

Small footprint, big impact. Micro branches are great, lower-cost ways to get closer to where your clients live, work, and through smaller, but convenient locations. Use technology to enhance the capabilities and productivity of your associates.
Artboard 3 copy

FLAGSHIP BRANCH

The hub for your brand. Establish a central point for your clients to interact with your brand and everything you have to offer, as well as a place for your employees and executive teams to congregate and work. Some combine this with their regional headquarters.
Artboard 3

REMODELED BRANCH

Optimize your current spaces. Decide which branches need to be downsized. Branches that have a clients seeking advisory conversations are ideal to keep open. In branches with less transaction traffic, get rid of teller lines and turn the space into Community Rooms.

STAY ON THE FACT-FINDING PATH

Jumpstart your next transformation project with an industry expert.

Jumpstart Your Project

 

 
© 2024 DBSI-Inc.