We project branch usage by US consumers will drop at a compound annual growth rate (CAGR) of -2.01% from 2019 to 2024, based on FDIC and Javelin data.
Banks are slashing their branch networks to reduce costs and stay relevant — but they should proceed with caution. Factors behind the falling number of branches include shifting consumer preferences for digital banking (especially as younger generations come to the fore), as well as many incumbents’ desire to cut operating costs by reducing their physical infrastructure and in-branch headcount as automated banking options proliferate.
Read the full article on Business Insider.