Are banks worthless without branches?

It is true that banks are providing remote facilities and everything is now on the tips of customers. Account opening is easy as customers can easily do everything from their homes. Apart from this, even executives from the bank side are also available for home visits if required. It was found in research that bank branches are needed more than ever. The reason behind this is the need to meet bank managers. 40% of customers want to visit the bank and talk to bank managers about their financial needs and management. The argument will obviously go ahead if discussed deeply. However, from a neutral point of view, bank branches are important as they give a sense of security to customers as they can anytime visit if any issue occurs. 

You can assume that branches are not necessary, but the fact is they offer a layer of protection and security to customers so that their money is secure. And a conventional thought is, the bank premises gives confidence to both customers and staff. You may not visit the branch, but there is an assurance that some people are sitting there to help you out when needed. You may refuse it, but this is a fact. 

Many digital banks are now opening branches and if to ask why then the answer will be marketing. Opening branches is not about cash deposits, advice, services, or transactions. Today, it is about presenting a safe perspective to customers about banks. More than this, banks play an important role in trading, financing, and helping small and medium businesses. If all small businesses switch to digital banking, but still there are some businesses that work with cash and coins. However, the branch should have minimum visitor traffic, else it is not worth opening a branch. 

It is very crucial to have an adequate number of visits to a bank branch otherwise branch may face fewer returns and a high rate of investment. Some branches may face closure if they are not getting enough visits and a return on investment. So, for better management of the branch and to gain impressive results bank management should keep everything on track with their overheads and cash flow, and expenses. There is no point in renting a big facility for a branch when you have no visitor traffic even 20 customers per day. 

The conclusion is that branches are necessary as people want to see their money and ask questions and doubts to a bank manager. Let’s say a customer wants to keep some confidential documents or gold in a bank locker. Obviously, the customer wants to see where his belongings are kept and secured. They may want to visit the branch where their belongings are locked and may want to meet the executives as well. It is evident that once a customer is familiar with and gets comfortable with any executive, they always seek that executive only. Therefore, branches can also attract customers with the perfect blend of on-site as well as digital services.