Brick and Mortar banking remains prevalent in our technological society
With 15 current banking facility projects, we concur with the FDIC that Brick-and-Mortar banking remains prevalent in our technological society. Want to understand why? Check the article to find out!
POSTED: FRIDAY, FEBRUARY 27, 2015 5:00 AM
By Cole Epley
The trappings of an increasingly technological society have no doubt had an impact on how business is conducted in bricks-and-mortar bank branches, but a new study from the Federal Deposit Insurance Corp. shows that physical bank offices are still the primary method of banking.
And they’re likely to stay that way.
The study, available here, indicates that even though physical bank branches in the United States have been on the decline since 2009, per-capita branch density in 2014 remains higher than in any year before 1977.
Bank branches have historically been pared following major banking crises, the report illustrates, but expansionary periods have always lasted longer than contractions and have consistently resulted in a net gain of branches.
Despite the ubiquity of mobile and remote banking offerings, then, the FDIC suggests your favorite teller will likely be around for a while.
“New technologies have certainly created convenient new ways for bank customers to conduct business, yet there is little evidence that these new channels have done much to replace traditional brick-and-mortar offices where banking relationships are built. Convenient, online services are here to stay, but as long as personal service and relationships remain important, bankers and their customers will likely continue to do business face-to-face,” a study report said.