Bank branches continue to be the primary driver of new-to-bank sales, representing the dominant revenue channel for institutions and the primary way consumers open new accounts. Though digital account opening may be an easy-button for customers, trends data shows that for financial institutions, digital acquisition results in higher attrition rates and lower profitability than serving customers in bank branches.
For all the talk of branch channels disappearing, institutions know first-hand that the physical retail channel offers their biggest opportunity. “The long-running debate over whether branches are dead, dying… misses the key point,” says The Financial Brand. “No business – banking included – succeeds or fails because of delivery channel efficiency. It lives on sales.” And on that front, branch networks are far and away the “champs of retail banking.”
Sources: Celent, “Branch Transformation Research Poll” and The Financial Brand, “Digital Banking Has a Long Way to Go to Surpass Branch Sales,” October, 2022