Branch transformation: The data behind the trend
With traditional transactions continuing to move toward mobile and online banking, financial institutions are considering how the branch fits into their distribution strategy. While the dust seems to have settled around financial institution closures caused by the banking crisis of 2008, many are still trying to figure out what’s next for the banking center. In 2013, branch counts in the U.S. actually netted positive growth, but a recent study conducted this year shows branch count to be declining*. Amidst the fluctuating data and varied analysis, Codigo decided to ask the industry directly what it had planned for banking centers this year and into 2015.
Many in the financial space have published opinions on the direction of branching but few have accompanied them with statistics. In an attempt to remove some of the confusion around the popular topic of Branch Transformation, Codigo surveyed over 150 Banks and Credit Unions across the country to ask what they have planned for their retail locations.
None of the respondents were from institutions with over 250 total locations. This is unique because most of the press around branch closures and transformation tends to be centered on institutions of that size and above, while ignoring trends within the vast majority of Banks and Credit Unions in the United States and abroad.
The survey inquired about building, remodeling, and closing locations, as well as branch design, staff, and technology – all to discover exactly what “branch transformation” includes.
Respondents were U.S. financial institutions evenly distributed throughout the country, with credit unions outnumbering banks by a little more than 2 to 1. Institution size varied from smaller community banks to major, multi-state networks with the majority representing those with 1 to 25 branch locations.
Click here to download the full Codigo Branch Transformation Report
*Based on statistics reported by SNL Financial as of April 2014
