JPMorganChase plans to close 300 bank branches over the next two years, about 5 percentof the total, as more customers move online and the bank seeks to cut costs.
The closures are partof a $1.4 billion cost-cutting plan the bank announced for this year. Thelatest developments were revealed during the bank’s annual investor dayconference Tuesday.
Online and mobilebanking have become increasingly popular and that trend is expected to continue.The shift online has begun to make brick-and-mortar branches staffed full oftellers less necessary and, frankly, expensive.
With banks and creditunions looking to rightsize and reconfigure their branch networks on their waytoward an omnichannel banking environment, the fundamental role of branches isbeing reviewed. Recent Mercator AdvisoryGroup research points to an increase of transactions at self-service channels,such as at ATMs and through mobile banking, with branches being increasinglyused as an advice and up-selling channel.
Overview by Ed O’Brien, Director, Banking Channels for Mercator Advisory Group
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