Traditional Banking is Here to Stay

For years, there has been speculation about the death of retail banking. With the advent of online banking and mobile apps, many people thought brick-and-mortar branches would soon become a thing of the past. However, this is far from the truth. There will always be a need for traditional retail banking, even if it looks a little different in the future.

It is undoubtedly the case that people visit physical bank branches less frequently to take care of their banking business. This is more a function of convenience than anything else. Many banks are now using artificial intelligence (AI) and chatbots to provide their customers with an even more convenient experience. As a result, fewer new branches will be built as banks focus on expanding their digital offerings instead. That's where online and mobile banking comes in--they provide the convenience customers crave without sacrificing too much of the personal touch. Banks can still offer solid customer service by allowing customers to conduct transactions online or through a mobile app.

Additionally, some banks have reduced their hours or closed their lobbies in response to the pandemic. However, these changes are temporary, and banks will eventually return to in-person business as usual.

Many people still value the personal touch that comes with an in-person visit to the bank, and I am one of them. I prefer physically taking my money into the bank and depositing it myself. Some might call me old school, but that doesn't change the fact that many people feel similarly. In-person, face-to-face transactions will prevail. Even though it makes up a smaller portion of the banking industry than it once did, it is still essential to providing hands-on service to clients.

We may not see as many new branches in the future. However, traditional retail banking will still have a relevant role to play. People appreciate the personal touch that comes with working one-on-one with a teller or loan officer. This is especially apparent with the recent influx of job postings in the banking industry. Here at our recruiting company, we've seen a significant increase in banks coming to us for help filling positions in skilled labor fields such as lending, business development, finance, marketing, and operations. Perhaps this is a sign that physical banks are here to stay.

What do you think? Let me know in the comments below.