Bank branches are closing. Why?
More U.S. banks are closing their local branches by the hundreds, with nearly 200 being cut in just the first quarter of 2025.
It's clear as to why - people are focused more on digital transactions and digital banking than in-person banking. But that doesn't mean there are not parts of the country that rely on their local branch for services.
Closing down branches creates whats known as a "banking deserts," where financial services aren''t available for miles, leaving customers stranded. Should traditional bank branches be closing this fast?
Banking deserts impact trust and personal service
The Loss of Human Touch
Customers value the ability to interact with knowledgeable staff, seek personal advice, and resolve issues instantly. The closure of branches isolates customers who need human assistance.
Isolating Communities
Elderly populations, financially underserved communities, and those who rely on in-person services for complex transactions may be weary of purely using online banking apps or neobanks. Purely digital banks don't offer important teller services like check printing, card printing, account openings, and other services that customers so often need from a physical teller.
Cost Savings vs. Customer Satisfaction
While branch closures save operational costs, they can also reduce opportunities for cross-selling and upselling, which frequently occur in face-to-face interactions. Balancing cost reductions with maintaining high levels of customer service remains a critical challenge.
What are the solutions?
Enhancing Digital Integrity
Banks must ensure that their digital platforms are user-friendly and universally accessible for all customers.
Personal Financial Services
Banks need to offer personalized digital interactions that replicate the feeling of trust and attentiveness from branches.
Easy Customer Engagement
Banks need to enable smooth, secure document management that maintain data integrity.
Bridging the gap between branches & automation
With these solutions in mind, banks are continuously looking for ways to bridge physical and digital services, and the best way to do this is through automated branches, complete with:
- Self-service machines that offer more than ATMs
- Minimal tellers & more universal banking associates
- Digital banking first approach
Transforming the customer experience
TellerCentral is the self-service machine of the future, equipped to help customers in an automated branch by offering customers with ability to
- Print cashier's checks
- Print bank cards
- Print physically secure documents