Consumers are more mobile than ever, and the banking industry shows just how quickly innovations alter consumer behaviors. It took decades for simple cash-dispensing ATMs to be accepted, but now mobile apps and FinTech define the entire future of banking real estate.
While the recession forced banks to tighten operating costs and halt branch growth, mobile banking picked up momentum. As a result, banks are consolidating and optimizing locations. JLL’s 2017 Banking Outlook reveals that the recession and consumer technology have led to a near-8 percent decline in U.S. branch banks since 2009, according to the FDIC. At the same time, new branches are still being built to fulfill market needs, indicating a robust and evolving industry.
“The branch strategy of relying on sheer numbers to win market share is a thing of the past, and now banks need to focus on a customer-centric real estate approach,” said Geno Coradini, Executive Vice President and Lead of JLL’s Retail group. “Mobile apps and FinTech have transformed how we bank, but branch banks don’t need to compete with these tech advances. Instead, they should leverage them to maximize real estate cost savings and the customer experience moving forward. Technology brings a sea of change to retail banking, but the industry isn’t drowning; it’s evolving.”
For more on this story visit the following link: From Bricks to Clicks: FinTech Driving Bank Branch Transformation