Note from the CEO: Bye bye brank branches. Digital transformatiom has made a trip to the bank a thing of the past. Kind of. Since almost all banking functions can be done online or mobile, banks are closing branches. BUT, there may be fewer branches but there will always be a need for a physical location. Certain things can not be done remotely (like yelling at a teller). So what will happen to branch banks? Convert into (or back to) fast foods outlets?
“Remember when all a consumer’s banking needs could be taken care of within – of all places – a branch? Until recently, the local branch was the hub of all bank activity for consumers. Now, bank branches must co-exist with all customer channels as part of a larger network that’s led by digital touchpoints.
With more than half of all financial services customer interactions happening through digital channels, one would assume that physical bank locations are on their way out the door. It’s true that 1,614 branches in America were closed last year, but surprisingly, almost 38% of banking is still occurring within the walls of the remaining locations.
Why are people still visiting their local branches? As surviving physical branch activities become obsolete as they are made possible through digital means, what can be done to keep local branches alive and well?”