2017 United States Banking Outlook
The banking industry has forever changed. Market superiority is no longer simply about who has the most “bricks.” It’s about how effectively your bank can deliver its services to customers. That means remote, anytime, anywhere access for transactions.
Billions will be saved in annual real estate costs as banks increasingly connect through mobile apps and fintech. This online evolution lets banks serve their customers’ needs more efficiently while keeping costs in check. Though change doesn’t happen overnight.
Branch banking remains a major part of the industry. As of Q1 2017, there were around 90,000 branches across the United States. Those branches in good locations remain competitive and branch openings are still taking place nationwide.
New growth doesn’t negate challenges. Even high-growth areas like Florida and Texas have seen their share of branch reductions in recent years.
Select a market on our interactive map below for a detailed branch count breakdown since 2010.
So, what does the future hold for the industry?
The number of branch locations will continue to shrink. Banks will reevaluate location strategies and optimize branches based on market needs.
Mobile apps and the broader use of fintech will streamline personal and business banking. This will fundamentally change how, and how often, customers use branches.
Banks will shrink branch sizes—saving billions in real estate costs annually—to meet changing consumer behavior.
Branch roles will change as banks tailor each location to meet local customer needs and demographics. There will be a shift from a handful of full-scale operations to much smaller locations for basic transactions.
Automated branches are coming. Expect to see greater use of centralized tellers to handle basic transactions.
For a deeper dive into the current state of branch banking, the evolution of the branch model and the shifting customer trends that are reshaping the industry,
download our complete 2017 Banking Outlook.
475 branches (2014-2016)
100 branches (2017)
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Vice President, Director of Research Dallas
Research Director, Midwest Markets