You may have noticed that branches of many different banks have closed recently. Actually a lot of bank branches have closed. Customers of many different banks have had to start banking solely online rather than trying to find another branch to replace one of the ones that have closed. While you may think this is probably the worst of it, chances are, it’s not. Over the course of the next ten years, close to half of all of the branches of banks in the United States could actually disappear. A financial services research firm has done this research and is seriously concerned about the possibility of all of these branches closes.
Why?
Bank branches have a lot of overhead costs and many customers rarely visit the actual banks anymore and opt to instead bank online or use ATMs that don’t require tellers. So could this be the banks’ fault? By adding many features such as being able to deposit checks using the camera on your phone, being able to pay bills online, and many teller-free ATMs.
Last year in 2015, 25 million Americans started banking without the use of actual, physical bank, for the first time. Interest rates are low and its really hurting banks these days. Branches are known to bring in customers with free things and promos to make them open up an account. Interest rates are extremely close to zero percent over the last 10 years and it’s not making much of a difference banks for those accounts that are being opened because of the small interest rates.