Friday, February 20, 2015

FDIC Study: Bank Branches Shrink but Remain Prevalent

Although the number of bank branches has fallen over the past half-decade as mobile and online banking choices grow, branches remain a prevalent community fixture, the FDIC said in a study noting that "consumers continue to value and use physical banking offices."

The number of FDIC-insured bank branch offices has fallen 4.8% since 2009 to 94,725 in 2014, a decline that mirrors a similar dip in the early 1990s after the savings and loan crisis. The intervening 22.4% growth in branch totals — from 1994 to 2009 — was prompted in part by legislation that relaxed previous restrictions on branching, with large banks driving the increase in the mid-1990s as they expanded their retail footprints.

An ABA survey released last year showed branches making a small resurgence in popularity, with 21 — up three points from 2013 — of customers saying branches are their preferred banking method.

Read the FDIC study.
View ABA’s consumer preference survey.

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