Many modern banks offer a host of services that bypass the need for physical branches, including setting up new accounts, digital deposits, bill payments, and credit card applications - all of which can be done via a smart device or computer.
Despite the growing popularity of online banking, several services still necessitate physical branch visits. For instance, while depositing cheques is possible through a mobile app, cash deposits necessitate a visit to the bank or an ATM.
Applying for loans online has also become a common practice offered by many banks. However, in-person applications at the bank branches provide an opportunity to discuss your financial situation with a banking professional, which could increase approval chances compared to an online system.
Consulting with a financial advisor in-person can offer incomparable insights into suitable investments, which might not be possible to obtain online. Brick-and-mortar banks offer safety deposit boxes for rent where you can store valuables - cash, jewelry, important documents, and other prized possessions needing protection against theft or disaster.
Additionally, most banks provide notary services at no cost to their customers, useful when legal documents need notarization.
Nonetheless, a majority of common banking needs like setting up new accounts, withdrawals or deposits, and applying for credit cards or loans have made the shift to digital and can be accomplished via a bank's website or app. While there will always be certain services requiring a bank visit, the bulk of them can be efficiently handled from the comfort of one's home.
Traditional banking is gradually losing ground to digital banking. According to the Federal Deposit Insurance Corporation (FDIC), the current count of banking institutions stands at 4,549, with 76,742 branches, however, these numbers are dropping. The FDIC reports a net decrease of 1,100 branches across the US in 2024.
This downward trend and the adoption of online banking services is not entirely unexpected. A survey by Morning Consult for the American Bankers Association revealed that 55% of banking clients used mobile banking, 22% relied on online banking, and a mere 8% opted for brick-and-mortar services.
In conclusion, individuals are increasingly favoring online banking services over visiting a local bank branch. Most of the routine banking activities like account setup, cheque deposits, or loan applications can be conveniently managed using a bank's mobile app or website. Some services like cash deposits still require a visit to a physical location, but the trend of online banking is on a steady ascent while branch visits are progressively dwindling.