There was an article published in American Banker yesterday titled, Bank Branches Don’t Die, They Evolve. For those who don’t have access to the article let me summarize.
The author is basically saying that people of all ages like to deal with real people, particularly when it comes to finance. And while they may not visit a branch much, or at all, the fact that it is there is what really matters. People “want and deserve to personally interact with other people when it involves their finances.”
The author went on to say that the argument was made 30 years ago that branches would become obsolete but the fact is that branches are still alive and well today.
Not exactly. The number of bank branches has been in a steady decline for many years. According to this Washington Post article from April the World Bank predicts that the number of branches in the US by 2025 will drop 33% from their 2004 levels. In Europe that number will be 45%. Clearly the number bank branches is in decline.
The author ended the article with this quote that he initially wrote 30 years ago that he argues is still just as true today and will also be true in 20 years time: [Read more…]