The Twin Cities is known for its financial institutions, offering 790 total bank branches in our area. But, these numbers are changing as customers evolve. Today’s customers are forgoing yesterday’s bank and looking for banking partners who can provide value, convenience and superior service. They want the best rates and discounts and a banking experience that suits their lifestyle. That means banks must adapt to the changing customer and offer amenities like mobile deposits, mobile bill pay and the choice of interacting digitally – rather than with an actual human – depending on their needs.
Here are the notable trends, according to the JLL 2018 Banking Update:
- Bank branch consolidation – branches are declining 2.2 percent throughout the U.S., reflecting the industry’s ongoing evolution to serve customers effectively while reducing operating costs.
- More business with fewer branches – those branches that remain are in a strong position to increase overall business.
- Footprint optimization – Only two of the top banks saw a notable 2017 increase in a number of branches, which was due to acquisitions.
- Branch optimization is not an industry pullback – there’s a broader trend toward space optimization as bank branches reduce their square footage. Within the first quarter of 2018, new branch construction is taking a pause.
To learn why so many bank consolidations are taking place, see where branches are closing or rightsizing, and understand the vacant branches and re-use strategies that have worked, read our 2018 Banking Update.