PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Shrinking Number (and Footprint) of Bank Branches Today

By Edward O'Brien
October 17, 2014
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Man using banking machine. Close up

Is branch banking going the way of the fax machine? This question has been the subject of the much speculation in the business press over the past several years. The most recent FDIC report notes that the total number of bank branches of commercial banks and savings institutions was just under 95,000 as of June 2014, down 1.7% year over year and down 4.8% over the five-year period from June 2009.

Although some of the reduction in branch totals is the result of cost savings efforts and consolidation due to mergers and acquisitions and branch network rationalization, financial institutions (FIs) are in the process of eliminating redundant branches in an attempt to “right-size” their operations. While it’s true that today’s banks, credit unions, and other FIs are under increasing pressure from both internal and external forces to reduce costs and increase profitability, customer and member satisfaction remains a top priority.

It is too soon to write the epitaph for branch banking. Branch strategy is evolving, with a wide variety of configurations including “hub-and-spoke” branches, where traditional branches coexist with minibranches and flagship branches, depending on customer and market needs.

Branch footprints, which had ranged from about 5,000 to 10,000+ square feet, are being reimagined in new configurations that can be as small as 1,500 square feet (and smaller with “pop-up” branches) and include many new branches—most with expanded digital banking capabilities including ATMs, tablets, and kiosks—in the 2,500–4,000 square foot range.

Financial institutions are grappling with the best approaches to meet the needs of today’s customers as they realize that the overall customer experience is key to maintaining and building long-term relationships and lasting loyalty. At the core of this thinking is the need to more efficiently use their branch and digital assets to meet or exceed customers’ expectations, no matter the configuration or footprint size, and allow them to bank when, where, and how they please. – See more at: http://www.mercatoradvisorygroup.com/Templates/BlogPost.aspx?id=3689&blogid=25506#sthash.L6s6Ns5F.dpuf

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Banking ChannelsSelf Service and Convenience

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Authorization Rates

    Boosting Revenue for Merchants by Optimizing Authorization Rates

    May 12, 2025
    Why Payment Orchestration is the key to international merchant growth

    Ensuring Payment Decisions Pay for Themselves

    May 9, 2025
    cross-border

    As Businesses Reevaluate Cross-Border Relationships, Financial Institutions Can Help

    May 8, 2025
    Nacha WEB Debit Account Validation Rule Verification Solution, Quovo ACH Payment

    The Brave New Future of the Disappearing Account

    May 7, 2025
    solana financial

    After an Upgrade, Solana is Primed to Be the Blockchain of Choice for Financial Institutions

    May 6, 2025
    PAR values

    The Connecting Thread: How PAR Values Can Mitigate Fraud and Supercharge Loyalty Programs

    May 5, 2025
    mobile banking

    How Mobile Banking Apps Can Be the Center of Customers’ Money Movement Activities

    May 2, 2025
    uk visa mastercard

    The Warning Signs Looming Over Credit Card Lending

    May 1, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result