A 20% decrease in bank branch locations is expected over the next 10 years
We’ve all heard the catch phrase “bricks versus clicks.” But have you considered the cost savings tied to bank branch evolution from bricks to clicks?
Simple math tells an astonishing story: the cost per transaction through a bank teller is $8.00; the cost per transaction via a mobile app is $0.08. Mobile deposit, transferring and banking has changed the fundamental practice of consumer banking. Can the bank branch survive? This trend will likely reduce the number of U.S. bank branches by 20 percent over the next ten years. And, for those branches that remain, less space will be needed.
What happens to that excess space?
In a market like New York City, where it seems like there is a bank location every block, will this lead to additional space coming available? Or will banks adjust their current locations to cater to the changing landscape of transactions?
Find out what JLL research has to say in the U.S. Banking Outlook 2017: Branch banks: Navigating a sea of industrial change.