Why the bank branch is WAY MORE important than you think. (2024)

When you do think of a bank branch, do you think of; good music, great coffee, buzzing atmosphere, community projects, educations events, podcast recording studios, fashion collaborations, wellness programmes…probably not, and I wouldn’t blame you. But, we should as this is the future. And it’s already here in places.

The typical branch on any high street can extend beyond the need to fulfil simple transactional services like deposits or withdrawals. It does, can and will play a more fundamental role in underpinning local economies, enhancing accessibility to financial products, offering a safe space, and generally contributing significantly to the social fabric of the area.

In an era where digital banking is on the rise, believe it or not, the value of the physical bank branch has never been so important, see below the reasons…

1. Catalysts for the economy

First and foremost, bank branches act as economic catalysts for local communities. They provide financing options for small businesses, which are often considered the backbone of local economies. Offering loans, credit, and financial advice, a bank promotes the growth and sustainability of these businesses, leading to job creation and so on. Not to forget, the presence of a bank does attract other businesses to the area too.

2. Access to cash is still very important

Accessibility to financial services, like cash, is a critical aspect. Despite the growing trend of online banking, a significant portion of the population still prefers or requires face-to-face interactions. This includes certain demographics, those not may struggle with technology, and people who want the social element of in-person. Bank branches cater to these needs unlike digital, ensuring that all community members have access to cash and other financial services.

3. Financial security & advice

Moreover, bank branches contribute to financial literacy, safety and education within the community via their amazing staff. Many newer branch models (like Santander’s Work Café) now offer workshops, seminars, one-on-one advice sessions on various financial topics such as budgeting, saving, investing, and retirement planning. These educational initiatives empower individuals to ultimately make better financial decisions.

4. Contribution to the community

These larger, open-space design, bank branches now also serve as community hubs, providing a space to meet with friends, grab a coffee, speak to some new faces. They can host community events, support local charities, and participate in local initiatives, strengthening community ties and fostering a sense of belonging among residents. The personal relationships that develop between bank staff and customers can lead to customized financial advice and support, further enhancing the community's financial health.

To wrap it up, to me the current and future role of the branch is a fun and important multi-layered offering of great significance to any economy, far beyond basic cash transactional purposes. With the likes of Open Banking continuously accelerating, programmes like OneBanx will also continue to increase in significance, in and above the existing retail branches we are familiar with. It’s an exciting space to watch.