Branch Transformation

From Bricks to Clicks to the Metaverse and Beyond

Executive Summary

The number of US bank branches is declining, with over 5,300 closing in the past three years. Despite the ongoing debate about the death of branches, they can survive. But they need to transform for the digital age to avoid unnecessary costs and losing customers.


  1. What does the decline in consumer branch usage mean for banks?
  2. How are banks transforming branches to stay relevant?
  3. What should banks do to get ahead of changes in branch usage?

WHAT’S IN THIS REPORT? We explore what’s changing branch usage and how banks are rethinking their branches. We discuss what banks gain by optimizing their branch footprints and highlight factors that could upend the industry. Finally, we present a maturity model of actionable steps banks can take to transform the branch.

KEY STAT: Only 30% of US digital banking users cited having a nearby branch as a consideration when choosing a new bank, while mobile and online banking were cited by 48% and 36%, respectively, according to our 2021 US Mobile Banking Emerging Features Benchmark survey. That puts pressure on banks to reinvent the branch experience to meet consumers’ digital-centric preferences.

Here’s what’s in the full report


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    Table of Contents

    1. Executive Summary
    2. Key Points
    3. Recasting Branches for the Digital Age
    4. What Is Eroding the Importance of the Branch for Banks and Customers?
    1. What Trends Could Further Disrupt Branch Strategies?
    2. How Are Banks Transforming Their Branches?
    3. How Can Banks Act Now to Transform Their Strategies?
    4. Insider Intelligence Interviews
    1. Read Next
    2. Sources
    3. Media Gallery

    Interviewed for This Report

    Andy Aceto
    Executive Director of Marketing, Banking Software and Services
    Interviewed March 2, 2022
    Brynn Ammon
    Jack Henry & Associates
    Consulting and Custom Solutions Director
    Interviewed March 1, 2022
    Nicole Harper
    Jack Henry & Associates
    Director, Corporate Strategy
    Interviewed March 1, 2022
    Jonathan Hartsell
    Vice President, Strategy, Next Generation Banking
    Interviewed March 9, 2022
    Jonas Ng
    Head of Digital for Commercial and Enterprise Payments
    Interviewed March 2, 2022
    Simon Powley
    Diebold Nixdorf
    Head of Advisory Services and Consulting
    Interviewed March 4, 2022
    Joyce Rains
    Jack Henry & Associates
    Director, Client Services Consulting
    Interviewed March 1, 2022
    Kelly Taira
    Bank of America
    Head of Financial Center, ATM, and Market Strategy
    Interviewed March 1, 2022

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    Tiffani Montez, and Matthew Gaughan


    Caitlin Cahalan
    Researcher, Financial Services
    Maria Elm
    Senior Analyst
    Daniel Van Dyke
    VP, Content

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