The landscape of banking is rapidly changing, with a recent study predicting the potential extinction of physical bank branches in the near future. The rise of digital banking has significantly impacted the way people manage their finances, leading to a decline in in-person check deposits and other traditional banking services.
According to the study conducted by Self Financial, the number of physical bank branches has been steadily decreasing since 2012, with an average of 1,646 branches closing each year in the United States. This trend has been attributed to various factors, including the 2008 financial crisis, the increasing popularity of online banking, and the COVID-19 pandemic.
States like California, Illinois, and Florida have been particularly hard hit by branch closures, with thousands of branches shutting their doors in the past decade. On the other hand, states like Nebraska, Vermont, and Montana have seen an increase in the number of bank branches, bucking the national trend.
The study also found that a significant portion of Americans still prefer in-person banking for certain activities, such as making cash deposits, speaking to advisors, and withdrawing cash. However, the shift towards a cashless society and the convenience of online banking have led to a decrease in the number of people using physical branches primarily for cash-related transactions.
Despite concerns about security and access to real people for assistance, the majority of those surveyed believe that online banking will surpass traditional banking in the next twenty years. This indicates a growing acceptance and adoption of digital banking services among the general population.
As the banking landscape continues to evolve, it is essential for financial institutions to adapt to the changing needs and preferences of their customers. While in-person banking may not disappear entirely, the convenience and accessibility of digital banking are likely to drive the industry forward in the years to come.