While increased use of digital banking interactions doesn’t mean the branch is dead, it does mean branches need to evolve to meet new customer expectations.
Merger and acquisition activity over the past decade has transformed large U.S. banks into increasingly dominant mega-banks and reduced the market share controlled by smaller ones, particularly in major urban areas.
Despite the stereotypes of Millennials going all-digital for their banking needs, jumping to conclusions about generational change can lead bankers astray, according to BAI Research.
When it comes to banking relationships and attitudes towards money, Millennials resemble previous generations more than you might think.
Banks looking to optimize their performance need to focus on their branch density in each market – some markets need more branches while others may require a complete pullout.
While digital technology is critical for the future of banking, branches and call centers will be with us for a long time to come and need to be integrated with the digital channels.
In an era when branch efficiency is paramount, predictive analytics can help improve strategic planning for capacity utilization and workforce deployment.