The American consumer is still using bank branches

The future of bank branches may not be as perilous as once believed. Mercator’s data shows that the American consumer is still using branches, along with a myriad of other ways of interaction with their bank. Check that data out at https://www.paymentsjournal.com/dont-be-so-quick-to-bulldoze-the-branch/

Check out the video too. At around the 2:30 mark, Jamie Dimon discusses the fact that branches are not dying and that customers of all ages are using branches.

To call Jamie Dimon an influencer is an understatement. He is a center of gravity around whom others orbit. Dimon took over JPMorgan Chase in 2005, just a few years before the financial crisis struck. He has since turned the bank into the US's second-most lucrative business, raking in $32 billion in profits last year, the chairperson of the powerful Business Roundtable and a board member at the Federal Reserve Bank of New York, Dimon is reportedly a billionaire. Here he talks about the changes that most profoundly shape the economy and what he has learned up close from weathering them and optimizing them.

Bank of America Takes Another Step Toward Branchless Banking

From The Motley Fool –

“Bank of America announced on Tuesday that customers can now access its mobile app with their fingerprints, doing away with the need to enter a passcode. It's a tiny tweak, but it nevertheless represents an important step in the direction of branchless banking.

One of the biggest challenges for a bank like Bank of America concerns what to do with its expansive (and expensive) branch network. Ten years ago, its coast-to-coast network of physical locations was arguably its greatest competitive advantage. But today, it's evolving into an albatross.

A consulting firm that tracks the performance of bank branches, FMSI, estimates that transaction volumes at credit unions and community banks have fallen by 45% since 1992. Meanwhile, the hourly pay rate of branch employees has increased by 90% over the same period. The net result is that the cost of each in-branch transaction has risen by 133.3% in just over two decades.”

Read more>>