You should be noticing a change in the way you handle your money soon, if you haven’t seen it yet. Brick and mortar bank branches are closing down at a record speed, all thanks to the rise in mobile banking and easy ATM accessabiity. People don’t have the time anymore to go to an actual bank, wait in line, and deal with the frustrations of bank tellers and unwanted sales pitches. Today’s generation wants to do everything on their to-do list in as little time as possible, so they can maximize efficiency.
Last year, over 1,500 brick and mortar banks closed their doors due to lack of foot traffic. This figure doesn’t just include local banks, but large institutions as well. According to SNL Financial, a financial data firm, this is just the start of a huge shift for the banking industry – predicting that 40% of retail banking locations will wind up closing over the next ten years.
PNC Bank, one of the leaders in the banking industry, experienced the second largest closures of brick and mortar locations last year- shutting down 6% of their banks. Sun Trust was number one, with 8% closures for retail locations.
What cities experienced the largest closures of brick and mortar bank locations in 2012? Not the rural parts of America, like most would suspect, but the largest metropolitan areas in the United States – Philadelphia, Chicago and New York.
Financial advisors from Celent, a leading consulting firm, have said that if banks don’t adopt to the high demand from consumers for convenient. reliable, and safe mobile banking, they will fall by the wayside – quickly. They also say that consumers are looking for more versatility when it comes to ATM machines provided by banking institutions. Some of the things consumers are looking for include increased security protection, in light of numerous hacking attempts on ATM machines across the country.