Retail bank branches continue their evolution amid disruption
April 06, 2021
The number of bank branches across the United States continued to decline in 2020, but the amount of money deposited into the banking industry increased significantly. Nowadays, customers expect more than just a place to hold their savings—they’re demanding more mobile banking while on the go and enhanced services at their physical bank branches. Here are the biggest trends happening within branch banking:
Branches down, deposits up.
Despite the temporary and permanent closure of thousands of bank branches, total deposits grew at the fastest pace on record (since 1975). Overall bank deposits increased by over 20% in 2020.
Remaining branches retain relevance.
While banks are still decommissioning branches to optimize their portfolios, many are also opening new locations to better serve their customers. Despite the pandemic’s impact on human interaction, new branch designs reflect the need to solve complex issues in person, while providing digital solutions for simpler tasks.
Total finance app downloads by platform
Mobile banking is an essential service.
In 2020, mobile banking proved to be a necessity rather than a nice-to-have for most financial institutions. Mobile banking adoption grew by 65.5% in 2020, representing the overall shift in consumer demand toward convenience and essential services.
Download our Branch Banking Update 2021 report for a comprehensive picture of the industry, the new ways space is being optimized and what’s happening to all of those decommissioned branches.