People aren’t visiting branch banks. So Banks Are Wondering How Many They Need.
Branch traffic fell more than 30% in April and the first three weeks of May compared with the same period last year, according to Novantas, a financial-services research firm. Teller transactions dropped 32% in March and April compared with the same period last year, Novantas said.
The forced shift toward mobile banking delivers an important win for traditional banks, which have been trying for years to steer people away from branches and toward apps and websites for routine transactions. If customers adapt without much complaint, that could give banks fresh reasoning to expedite planned closures and consider additional ones.
About 85% of customers who have relied more on mobile and online platforms plan to continue doing so once the pandemic subsides, according to a survey from consulting firm A.T. Kearney.
And 40% of people expect to visit their local branch less often after lockdown restrictions in their community end, according to consulting firm Simon-Kucher & Partners.
Bank closures are coming and no one will even notice, except for those laid off from their jobs.
Covid-19 did not change this trend. Rather, it accelerated a trend that were already in place or just starting.
Also expect more work at home, more online shopping, more teleconferencing, and less business travel.
Grim Economic Data
- May 8: Over 20 Million Jobs Lost As Unemployment Rises Most In History
- May 15: Retail Sales Plunge Way More Than Expected
- May 15: Industrial Production Declines Most in 101 Years
- June 4: GDPNow estimates second-quarter GDP will decline by 53.8% annualized.
Global COVID-19 Risk Ranges Up to $82 Trillion
To understand the total global risk, please see Global COVID-19 Risk Ranges Up to $82 Trillion
Ripple Impacts May Last Years
For a detailed synopsis of the state of the economy and the ripple impacts, please see The Economy Will Not Soon Return to Normal: Here's Why.