Data Snacks, Member Exclusive

Data Snack: The dawn of bank branch 2.0?

  • The ‘death of the branch’ saga was all the rage back in 2020.
  • But now, with back-to-routine vibes emerging, it’s time to re-evaluate the role of a bank branch.
close

Email a Friend

Data Snack: The dawn of bank branch 2.0?

In the aftermath of Covid, most people have been approaching their banking activities through their banking apps – the ‘banking app-roach’, if you will: 31% say they use their banking apps daily and 33% say they do so weekly.

It’s true; the age of digital banking is upon us – i.e. if you don’t have to go to the bank, why do it?

But branches aren’t showing any signs of vanishing from the scene.

In November, EPAM, the IT services and consulting firm, released its third consumer banking report, surveying 26,000 people across the US, Canada, the UK, Australia, Singapore, Hong Kong, the Netherlands, and Germany. Among other things, the report zeroed in on branches.

As seen by this report, people are still turning to their branches for help every once in a while – and maybe even more so than last year. In 2021, 79% of respondents said they had gone to a branch at least once during the year, compared to 85% this year.

In fact, many consumers seem to regard branches as an important factor in evaluating their primary financial institution. For example, almost half the respondents said they would pay extra for in-branch financial guidance and advice. Meanwhile, 32% said they see branches near their home as an important feature for their bank to have. That stat turns into 38% among US respondents, by the way… 

Nothing seems to beat that face-to-face time, ey?

So why are so many people turning to branches, still? Well, it's not the branches themselves, but rather the humans inside. And if that sounds cheesy, have a look at what the report found were the main reasons for visiting branches:

  • 35% said face-to-face time
  • 26% said it’s easier in-person 
  • 32% said to access the services that can’t be accessed online  

The dawn of branch 2.0

Today, banks are still seen as the top source for financial advice. 38% of the respondents said they turn to their banks for help with their finances, compared to family members (32%), search engines (26%), financial advisors (21%), and friends (19%).

For banks, this may signal the potential to transform themselves into a hub for financial support, rather than a place to get mundane banking tasks done.

Main takeaway?

In the summer of 2020, we were seeing a whole lot of repetitive articles – from how to set up your work-from-home station to the acceleration of online banking. Consequently, there were quite a few ‘death of the branch’ songs being sung.

But just like work from home did not get rid of work from office, digital banking seems unlikely to snuff the importance of the branch – maybe just alter its role instead.

0 comments on “Data Snack: The dawn of bank branch 2.0?”

10-Q, Member Exclusive

How Affirm Card plans to kill credit cards

  • How would you dub a card that has the practicality of a debit card with the added functionality of a credit card? That's the Affirm Card.
  • Launched in early 2021, the Affirm Card has been in the spotlight lately. But what led to garnering significant attention now?
Sara Khairi | December 04, 2023
10-Q, Member Exclusive

Robinhood unveils a 5% APY for Gold members, but how will users respond?

  • Robinhood's recent move to challenge traditional banks includes its increased savings offering, a 5.0% APY for Robinhood Gold Members. 
  • The stock trading platform appears to be in a precarious balancing act, grappling with the escalation of deposit strategies while facing a decline in both transactions and monthly active users.
Sara Khairi | November 20, 2023
10-Q, Member Exclusive

Q1’24 affirms Affirm’s upswing in BNPL

  • Affirm's quarterly results indicate that back-to-back enterprise collaborations in conjunction with collective strategies are eventually winning out keeping the firm on course.
  • Going forward the BNPL provider intends to focus on continuing to invest in risk management, technology, and product development.
Sara Khairi | November 13, 2023
10-Q, Member Exclusive

Q3: The PayPal story isn’t over

  • PayPal saw improved earnings in the third quarter compared to the previous one.
  • Chriss answered some of the burning questions and gave a bit more color on what firm assets could require more work to turn around than he thought.
Sara Khairi | November 06, 2023
10-Q, Member Exclusive

Ted Pick is Morgan Stanley’s new leader. Where does it go from here? 

  • The question, 'Who will succeed James Gorman at Morgan Stanley?', that echoed in Wall Street's nooks and crannies has finally been answered.
  • The present and incoming CEOs might have different management styles. What they both share, however, is a shrinking economy and growing macroeconomic pressures at the time of assuming control.
Sara Khairi | October 30, 2023
More Articles