Consumers are king, and what do they want? Easy, fast, and effortless transactions, thanks to the rise in online shopping platforms such as Amazon. However, when it comes to banking it seems as though we’ve been stuck in the traditional method of big banks filled with bankers and tellers. Now, we can see a trend in lesser foot traffic at bank branches. With a majority of the services offered online through mobile apps or smart ATM’s, it is less common for consumers to “come in and stay a while”.
What are banks doing now? We’ve seen some banks try to adapt to this change by reimagining banking while making Cafes a part of their strategy. Capital One opened several “Capital One Café” locations which invites consumers (not just Capital One customers) to be a part of the community as they claim “banking should be about more than money”.
As consumers rely more on digital banking, we are seeing another shift in the industry, newer technology and smaller branches. As a result, on average, most new branches measure 2,000 to 3,500 square feet, which is significantly less than the 5,000 to 7,000 square foot branches of the past.
- In 2009 we hit of peak of 100,000 branches nationwide
- After 2009 we started to see a decline by 13,200 branches
- Last year (2019), about 3,164 branches have closed
- Banks may be closing, but deposits are growing
With social distancing and contactless options becoming of high importance, it is a telling sign where the banking industry will go.