Branch Closures Set to Accelerate After Crisis Subsides

Digital banking is having its moment and the bank branch should be quite worried; branch traffic is down 30 percent from a year ago and teller transactions are down 32 percent; “The way customers are interacting with banks is changing, and I think this pandemic has accelerated that behavioral change in a fairly substantial way,” U.S. Bancorp CEO Andy Cecere said to the Wall Street Journal; banks are now looking to accelerate the closing of branches over the next few years, so long as behavior sticks when the crisis ends; there is some early data showing that customers are willing to stay with digital and mobile banking; closing branches is complicated as there are real estate issues to navigate and customers that come into branches will lose that opportunity if they have not yet transitioned to digital. The Wall Street Journal

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