Below is a chart that shows the change in the number of branches in Bank of America’s Top 15 markets:
Seems like a very slow pace of closing bank branches considering the massive move to digital described by Moynihan. The next chart shows Bank of America’s top competitors in the seven cities that Bank of America did not reduce the number of branches.
The original question of “how fast will banks be forced to close their branches” seems like a distant memory, perhaps even contradicting the “Netflix moment”. Over 50% of Bank of America’s competitors in these 7 cities are keeping the number of branches the same (or even increasing the number of branches).
This is not a contradiction at all, the reality is that the digital revolution which is being pushed by innovative FinTech startups and investments by the banks themselves, is a collision of three forces:
In summary, the viability of each of the 93,000 branches run by 6,358 banking institutions in the United States depends on changing customer patterns, market conditions and competitive threats. More critical is the question of whether your firm has the analytics capabilities necessary to navigate your firm’s walk (or sprint) from physical to digital as the change occurs.