Self Financial Study Finds All Bank Branches to Close by 2034

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A recent study by fintech brand, Self Financial
has found that current trend suggest that all bank branches could
be closed by 2034. Bank branches in the US have fallen by 6.52%
since 2012, with the rate of closures doubling every three years.

In light of banks
being closed due to Covid-19 restrictions and lockdowns,
Self
Financial used government data and insights to show the states
where banks have been closing the fastest. The study also surveyed
1,114 US residents on the state and future of banking, and their
attitudes towards banking in a branch.

Eric Taylor, director of UX research at
Varo, said: “When the US economy opens up again
and starts to rebuild after the Covid-19 pandemic, traditional
banks will be facing steep losses from bad loans, sketchy
investments, and decreased deal flow. Income will be reduced across
most of their business lines. The economic situation will be dire,
and consumers will be hurting. In extremis, some small and
mid-sized banks will fail, while others, especially the larger,
more well-connected ones, will receive taxpayer-funded
bailouts.

“Banks will have to cut their operating costs, and the deeper
the crisis, the more operating costs they will have to cut. Closing
physical bank branches will be an obvious way to improve their
balance sheets, so I expect that’s what they’ll do.”

The study also found that 1 out of every 15 bank branches that
were open in 2012 is now shut, with Maryland seeing the highest
closure rate of any state at 12.52% and Florida seeing the most
closures (529) of any state since 2012.

46% of Americans believe that the current way we bank needs to
change, with access to cash (53.7%) and in-person advice (50.4%)
being the two most popular reasons for Americans to stick to using
physical banks found in the survey. More than half (55.2%) of
Americans believe online banks will soon outnumber traditional
physical banks

James Garvey, CEO and Founder of Self
Financialsaid: “Everyone should have access to financial
products that are both affordable and accessible, and the
collaboration between traditional banks and innovation in fintech
will make this possible.”

A spokesperson from N26 said: “There’s no
doubt that the Coronavirus outbreak caught the world off guard, and
stay-at-home and social distancing measures fundamentally changed
the way we interact with our communities and our finances. For the
past few years, user behaviour (particularly among Millennials and
Gen-Z) was already shifting more and more towards phones and mobile
devices.”

“However, the
pandemic forced adoption of mobile technologies
on a much
larger scale to people of all ages as people had to find ways to
work, learn and bank entirely online. People want their mobile
banking experience to be simpler, more intuitive, and
personalised”

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Self Financial Study Finds All Bank Branches to Close by 2034

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https://thefintechtimes.com/self-financial-study-finds-all-bank-branches-to-close-by-2034/