Executive Summary

The number of US bank branches is declining, with over 5,300 closing in the past three years. Despite the ongoing debate about the death of branches, they can survive. But they need to transform for the digital age to avoid unnecessary costs and losing customers.

3 KEY QUESTIONS THIS REPORT WILL ANSWER

1. What does the decline in consumer branch usage mean for banks?
2. How are banks transforming branches to stay relevant?
3. What should banks do to get ahead of changes in branch usage?

WHAT’S IN THIS REPORT? We explore what’s changing branch usage and how banks are rethinking their branches. We discuss what banks gain by optimizing their branch footprints and highlight factors that could upend the industry. Finally, we present a maturity model of actionable steps banks can take to transform the branch.

KEY STAT: Only 30% of US digital banking users cited having a nearby branch as a consideration when choosing a new bank, while mobile and online banking were cited by 48% and 36%, respectively, according to our 2021 US Mobile Banking Emerging Features Benchmark survey. That puts pressure on banks to reinvent the branch experience to meet consumers’ digital-centric preferences.