The path is clear…the branch is dead. With 77% of users choosing digital banking over other methods, why would anyone even think about opening more brick-and-mortar?
I know you hear the “but…” coming.
…but data shows financial institution branches continue to defy the trend of digital death seen in other brick-and-mortar stores. Even the Federal Reserve (Fed) calls the “persistence of bank branches…puzzling”. You see, the typical pattern is that, once a product or service is available online, visits to the physical establishment “decline significantly”, even if they sell physical goods.
The number of in-person financial institution branch interactions reported by U.S. consumers quite literally defies the norm.
Who Visits Branches?
Boomers. That’s what you were going to say, right?
Okay, yes. But they only visit a branch on average one more time a year than Gen Z.
That’s right, Gen Z visits a bank branch 3.6 times per year versus Baby Boomer’s at 4.6. Overall, over half (52%) of U.S. consumers have visited a bank branch up to 4 times in the last year, according to a Rivel Banking Research study.
According to the Fed, lower income earners visit the branch more often as do self-employed individuals. But, overall, branch proximity remains an important factor for most people when it comes to banking. A majority of consumers (69%) still consider branch location when they are thinking about switching banking providers.
Why Does the Branch Still Matter?
The Fed seems to think deposit taking capabilities are the primary factor for branch banking. This is likely because lower income households and business owners are more likely to deal in cash. However, most loan applicants and first-time home buyers are not comfortable entering into a loan or mortgage relationship without human contact.
Other interactions pulling in-person interactions across age-brackets include opening new accounts, resolving account issues, and scheduling time with an institution advisor. Of course, there are additional branch services that simply cannot be handled online like notary services, coin counting, and safe deposit boxes.
Keeping Branches Alive
Banks and credit unions who don’t innovate might end up facing, if not the death of their branches, a need to significantly scale down. But rather than going valiantly into that good night, many financial institutions are looking at ways to make their branches more valuable to their communities. How? By providing space and services that place them as a community partner such as educational workshops, community space rentals, multilingual services, and, of course, financial advisory services.
But just how can your community members and account holders find your branches or know about your services without a robust, interactive locator like Wave2? They can’t!
That’s why we’ve developed integrated locator technology that not only helps people find your locations – but assists your institution with communications, notifications, and digital/mobile location management.
Contact Wave2 today today to find out how we can elevate your financial institution’s locator game!
—
Wave2 Contact:
Jason Green, Co-Founder
301.652.1245
jgreen@wave2.io
Schedule a Demonstration & Discussion
###