The branch bank of the future is coming, and your friendly neighborhood teller may be history.
With transactions migrating online, customer traffic down and once-bustling branches closing its doors, major banks including Fifth Third, Chase and Capital One are racing to create cozier, millennial-friendly spaces offering financial advice, technical support and, in some cases, bank cappuccino.
Say goodbye to pens on chains and even teller windows, as banks shrink its retail footprint and shift the focus away from once-essential functions such as cashing checks and taking deposits, The Chicago Tribune reports.
The financial technology revolution has taken a toll on the traditional banking model, with upstart online competitors and digital transactions turning many branches into veritable museums. Banks have shed more than 10,000 branches across the U.S. over the past decade, and many regional branches are consolidating, which has been seen in Louisiana.
The number of bank locations in the U.S. peaked at 99,550 during 2009—the end of the Great Recession—and have declined annually to 88,070 branches last year, according to data from the Federal Deposit Insurance Corp.
But maintaining a physical presence still matters, because studies show a nearby branch still plays into the decision of which bank new customers choose, whether they visit regularly or not.
Chase launched its “digital first” prototype in Chicago last year. Amenities inside the 3,900-square-foot branch include video conferencing to connect customers to offsite Chase financial specialists, casual meeting areas and a digital advice bar.
There are no teller windows or traditional transactions, but banking associates are on hand to help customers cash a check at the branch’s ATM, or make a deposit on their smartphone.