The days of the bank branch being the most immediate and visible way customers interact with banks are long gone. The Federal Deposit Insurance Corporation (FDIC) estimates that today, on a net basis, there are almost 7,700 fewer branches in the U.S. since 2007, a decline of nearly 8 percent. JLL Real Views explores how the branches of the future can provide appropriate physical space for an industry that is becoming more digital.
The branch-on-every-corner model has evolved, and mobile, digital and other automated models are forming the front line for banking operations.
“Banks have been consolidating and optimizing branches behind the scenes over the last decade,” observes Christian Beaudoin, Senior Director of Research at JLL. “This is not meant to imply that bank branches are disappearing, but they are certainly evolving, and oftentimes in formats that are completely unrecognizable from their predecessors.
“During this period of consolidation, new branches have also been built – as many as 475 new branches since 2014 – but these new locations are very different from their earlier peers.”
Here are four key ways that banks are adjusting their real estate strategies to get the most from their branches while meeting customers’ changing expectations and preferences.