Can branch banking be saved?

Report shows why credit unions should not be lulled into a false sense of confidence by the fact that the number of branches have not yet significantly decreased or that consumers say they want branches on every corner. It’s time to re-evaluate distribution strategies, closing underutilized branches, reducing the size of remaining branches, and integrating digital technologies for a better consumer experience.

by: Jim Marous

The digital revolution is changing the daily lives of all consumers. No place is this more evident than in the way people bank. ATMs, telephone, online banking and mobile banking are transforming customers’ banking experience, enabling consumers to bank where and when they want.

As was the case with ATMs decades ago, consumers prefer the convenience of new technologies, combined with the assurance of a local branch. Despite this affinity for branches, the economics of yesterday’s branch don’t work.

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