Dr. Feliks Kravets’ Post

https://lnkd.in/eMrqA2bb Digital banking services are increasingly becoming the preferred choice for consumers.

In 2017, our firm completed a major study on the banking industry's Stealth Attrition and what drove customer defection. Our follow-up 2022 Seamless Banking and 2023 Humanizing Advice studies reconfirmed the importance of advice delivered in a physical branch in driving loyalty. Some banks have taken notice. https://lnkd.in/gG2G7NM6

The future of physical bank branches in the US is a topic of discussion as industry "experts" predict their potential extinction by 2041. According to a recent report by Self Financial, an average of 1,646 branches have been closing annually since 2018. California leads in branch closures over the past decade, with 1,114 branches shutting down, followed by Florida (1,091) and Illinois (858). Data from the Federal Deposit Insurance Corporation reveals a significant decline in commercial bank branches nationwide. Between 2012 and 2022, the number of branches decreased from 82,461 to 69,590, marking a 16% reduction. This trend highlights the evolving landscape and challenges facing traditional banking institutions in the digital age.

🏦💻 The Changing Landscape of Banking: Chase Bank Closures and Openings As we witness the digital revolution in the banking industry, it's essential to stay informed about the evolving landscape. Chase Bank, like many others, is adapting to the times by promoting online services, which has led to the closure of several bank branches. According to data from the Office of the Comptroller of Currency (OCC), Chase closed over a hundred branches last year. However, they are not alone in this trend, as banks across the industry are reevaluating their physical presence in response to the growing demand for online banking services. These closures are significant events, and they must be reported to the federal agency, providing transparency to the public. While only one additional closure has been announced this year, Chase will continue with the closures announced in the second half of 2023. We will keep you updated on these closures as more information becomes available. On a positive note, the OCC has approved the opening of twelve new locations, highlighting that despite the overall trend of declining physical branches, banks are strategically repositioning to meet customer demand. In Chase's case, even as some branches closed, they opened 192 new ones last year, demonstrating their commitment to serving their customers in different ways. The banking industry is evolving, and we're here to keep you informed about these changes. Stay tuned for more updates on branch closures and openings, as well as insights into how technology is reshaping the way we bank. https://lnkd.in/efmr9BqR #bankingindustry #BranchClosures #digitaltransformation #CustomerDemand #financialservicesindustry

Why is Bank of America planning to open 165 new branches by 2026 when it admits that more than 95% of client interactions take place on its digital platforms? 1. Checking and savings accounts are easy for bank apps, but many clients still like a little hand-holding when it comes to the bigger stuff. In the past year, nearly 10 million appointments were made with specialists at BofA financial centers, and around 20% of those meetings were to discuss investing options, the bank said. 2. Plus, more than 12 million Americans live in “banking deserts,” which makes mobile banking their only option. BofA is looking to fill some of the gaps. Hat tip to Abigail Pereira for sharing this article with me. https://lnkd.in/gTBz-ztm

🏦 The Changing Landscape of Banking: Why Community Banking Matters 🏦 In recent years, we've witnessed a significant shift in the banking industry, with many big banks closing branches. While this trend may reflect evolving customer preferences and the rise of digital banking, it also underscores the importance of community banking. Community banks play a vital role in supporting local economies and businesses. They are deeply rooted in the communities they serve, understanding the unique needs and challenges of their customers. This local focus allows them to provide personalized services and tailored financial solutions that may be overlooked by larger institutions. Moreover, community banks foster a sense of trust and loyalty among customers, building long-lasting relationships that go beyond mere transactions. They reinvest in the community, supporting small businesses, homeowners, and local initiatives that contribute to economic growth and prosperity. As we navigate this changing landscape, let's not overlook the invaluable role that community banks play in our communities. They are more than just financial institutions; they are pillars of strength and stability that help drive local economies forward. #CommunityBanking #LocalEconomy #BankingIndustry #FinancialServices #SupportLocal

I am curious to hear what you value most in a bank or banker! Do you prioritize customer service, low fees, digital tools, or something else? Share your thoughts and experiences on what makes a banking relationship truly effective and satisfying for you. #CustomerService #Relationships #Banker #Banking #FDIC #Flagstar #Deposits #Wires #ACHPayments #CashManagement #OnlineBanking #MobileBanking #Financing #FraudPrevention #Security #Flagstar #WorkingCapital #EquipmentFinancing

Citibank and Chase are among the major banks that collectively closed eleven locations in just one week in the US as the move to online banking continues throughout the globe. A recent GOBankingRates survey found that nearly 70 percent of customer between 25 and 34 preferred to do their banking online rather than in branch. Read more https://lnkd.in/eDBF3f5V #onlinebanking #digitaltransformation

"Over the last few years, banks have found themselves in a cycle of managing crisis to crisis. While the banking industry remains strong and resilient in the aftermath of the Covid pandemic and recent bank closures, maintaining a foundation of trust with our communities is not easy. The good news is that while trust in the overall banking system might have taken a hit, more than eight in 10 Americans say they are happy with their bank and satisfied with their customer service experience, according to a 2023 Morning Consult Survey." #ownersrepresentative #financialinstitution #bank #bankdesign #creditunion #credituniondesign #structurefirst

FedNow, an instant payment system, was introduced to the payments industry by the Federal Reserve in 2023. Read part 2 of our Bankers as Buyers blog series to learn more about the importance of FIs adapting to these advancements as the banking industry continues to change. #paymentstech https://hubs.ly/Q02wy0DK0