“Customers’ banking preferences and behaviors are changing, influencing how and where we operate,” stated Keith Lawson, US Bank district leader. “As a result, we are consolidating some of our physical locations.”
http://www.burnettcountysentinel.com/news/us-bank-branches-closing-in-grantsburg-cushing/article_c6ab8eee-9d30-11eb-961e-0b6ce152e4d2.html
I see banking slowly headed in the direction of insurance. Boomers used to have an insurance agent with an office. Met with the agent yearly to review their insurance needs.. Now, most people have a phone number and web page. The new model works way better than the old.
Branches are expensive and need a return on investment. As boomers fade, so will most branches.
My investment would be on the digital base to stay competitive. The platform of banking will be completely digital over the next 10 years. The only " in person " I see at my branch are boomers who want st▯▯▯d print outs of balances and feel the need to cash every check they come across.
In answer to the comment above...
I would open branches were I to have the ability to open a bank. Contrary to statistics showing customers prefer to do all their banking on-line; I believe that the pendulum is close to the point of swinging back. People are sick and tired of wading through automated telephone systems only to listen to bad music tunes played for indeterminate lengths of time; waiting to speak to a real person who is more often than not, someone for whom English is a second language.
My dream bank would have both on-line (w/blockchain) and in-person services. Foot traffic is easily tracked and staffing to accommodate busy hours is not rocket science. Whenever my husband (who prefers to bank in-person) went to our local branch he often waited in long lines.
I believe that there will always be customers who will be happy to pay reasonable fees, provided they receive the service and respect they deserve. USB has shifted focus to higher return on investment businesses and seems more than willing to lose customers who are not willing or able to conform to web based banking. Actually, I think USB management wants all the business but they are only willing to provide service to corporate clients and millionaires. They figure those Baby Boomers who won't conform will d-e off soon so it doesn't matter, but I disagree. Young people need financial education and personal guidance now more than ever. There is a market for an old-fashioned bank where you can feel like you are valued and your future financial success is just as important as the shareholder profits.
If you wanted to create a brand new bank today, would you have any branches? I know that some banks are still building new branches but it's been years since I've been in a branch. Can't think of a single reason that they exist, for my needs. Seems like on online only platform would be most profitable.
Anyone know the current number of USB Branches?
The last I recall there were 3000 but that was 5 years ago. Many have closed since then.
I predict there will be fewer than 1000 by the end of 2022.