Though 71 percent of consumers use online banking and 53 percent use mobile banking, according to the Federal Reserve, perks like coin counting machines and the ease of opening accounts have Americans continuing to visit brick-and-mortar locations. Maintaining a financial institution isn't a cheap endeavor. According to Reuters, the average banking location costs between $2 and $4 million to open, and between $200,000 and $400,000 to maintain each year. It also takes about a decade for the location to really hit its stride. While many banks are attempting to cut down on their number of physical locations, Americans don't seem to be leaving their banks behind in favor of a solely online presence anytime soon. Here are a couple of reasons bank branches are still going strong:
If someone is looking to open their first savings account, apply for a loan or take out a mortgage, he or she would likely rather do this in person. Working directly with a bank employee will put his or her mind at ease, since these experiences are typically nerve-wracking. When it comes to their money, people like to know they're handling it correctly.
As nice as it would be if online and remote banking was foolproof, there are times consumers need contact with a person to solve their financial issues. If people find fraudulent charges taken out of their checking accounts, the last thing they'll want to do is sit on hold on the telephone for hours. If they has the means to get to the bank, you can bet that's what they will opt for.
When it comes to dealing with physical cash, rather than checks or cards, there's no beating a physical bank branch. Whether a small-business owner deposits daily earnings each day at the local bank branch, a young child puts birthday money into a savings account or someone is ready to use the complimentary coin counting machine to get rid of that jar that's been accumulating for years, bank branches are vital to providing daily convenience in addition to online and mobile services. While it's certainly important for banks to optimize their online presence, this doesn't mean that continuing to investing in their physical branches isn't still necessary.
November 17, 2016