The Case for Branches: Why Physical Locations Still Matter
Over
the last decade, many routine banking tasks have conveniently migrated to
digital platforms accessible through smartphones and computers. Despite the
increased focus on digital banking enhancements, physical branch locations
still play a key role providing U.S. banking customers and credit union members
with an omnichannel banking experience. In fact, 45%
of American bank account holders reported handling some banking matters in
person at a branch location in the first quarter of 2025.
Although digital banking advancements have provided convenience, there are still enduring reasons why consumers continue to utilize physical locations. Financial institutions should prioritize branch locations for the invaluable benefits they provide, including personalized service, assistance with complex transactions, convenience, and strong community relationships.
Personalized Services
Many consumers value direct conversations with financial professionals, especially when receiving advice tailored to their unique situation. For example, in the first half of 2025, Ascend Federal Credit Union scheduled approximately 400 financial health checkups. This free offering provides members with valuable, one-on-one financial guidance – a service that many opt to do in-person at a branch. Through these checkups, members work with a certified financial counselor to build a budget, review their credit, and establish a plan to help them meet their financial goals.
Handling Complex Transactions
It is not uncommon for individuals who typically conduct their banking digitally to visit a branch when tasked with a complex transaction, including securing a loan, resolving account issues, or managing their investment portfolio. By visiting a branch, account holders receive real-time expert guidance personalized to their unique needs. For banks and credit unions, these moments are also opportunities to educate and introduce incremental services and products.
Convenient Banking Options