I recently spent a few days back in a small town we called home almost 30 years ago. As I drove around the area, I found myself doing what most of us do when revisiting places from our past.
I took note of what had changed and what had stood still. Some of the old restaurants and grocery stores were still going strong. Others had disappeared, replaced by new businesses or left sitting vacant, frozen in time, while new structures were built alongside them.
But one thing in particular stood out to me. Bank branches
Sure, a few of the names on the buildings have changed due to a couple decades of mergers and acquisitions. But the branches themselves? Still there. Still open.
There were a few new ones, as well.
Even more remarkable, in a county with a relatively low population density, I noticed that an out-of-state bank that had acquired two different local banks had retained every single branch.
And knowing a bit about that operation, I'm confident those branches weren't kept open for sentimental reasons. These were business decisions made by a forward-thinking financial institution.
Traveling the country (and often countrysides) more than most folks, I continue to see evidence that bank branches remain as vital as supermarkets, restaurants, gas stations and pharmacies to most communities.
According to the "branches are obsolete" crowd, who have been preaching that message for decades, that just shouldn't be the case. We've been told ad nauseam that the role of branches at the center of the banking universe was … or very soon would be … seriously, any day now … over.
And yet, there they are. Still mattering.
The reason so many of these predictions have always fallen flat is that they often overlook something fundamental. Banking is far more than basic transactions.
Technology has changed how people bank,
The pending sale of the branches in eastern Pennsylvania to a central New York-based bank comes amid Santander's planned closure of 18 branches this summer and its continued focus on building out a national digital bank.
One of my most repeated mantras continues to be: People do not visit branches. People visit bankers. Branches remain at the center of the banking universe because bankers remain at the center of the banking universe.
Branches continue to thrive not because the industry hasn't evolved, but because they've adapted to it. The ones I visit aren't dusty relics. Most are well kept and continually refreshed. They are clearly still central to the communities they serve.
Evolving technologies have dominated headlines for some time now and will likely continue to do so. The talk of AI sucks the oxygen out of the room whenever the future of banking is discussed.
No one denies that banking's improving digital tools have become a vital part of the value proposition offered to customers across the board — and even a small competitive edge for some institutions.
But they're still just tools. It's the local branch banker who continues to help people buy their first homes, start a business or get through a rough patch. And despite what plenty of futurists predicted, a notable number of customers still choose the branch — yes, even the drive-thru — for their everyday transactions.
Whether it's cashing a check, making a deposit, getting a document notarized, or simply asking a question face-to-face, the branch remains a hub for both the simple and the significant.
And bankers remain the bank's most valuable sources of useful insight. They collect real data by listening, asking thoughtful questions and uncovering needs that algorithms alone will miss. Those things may not show up in many analysts' analytics, but they show up in customers' lives.
Technology can handle transactions, but it can't replace the reassurance of a knowledgeable banker who listens to and understands their story.
The continued investment in branches is a continued investment in bankers. A well-trained, motivated banker turns a physical location into a relationship hub. They're not just service providers; they're brand ambassadors who bring the bank's values to life through everyday interactions.
Few things provide more of a competitive advantage market to market than experienced and tenured branch teams.
Even customers who rarely walk into a branch still find comfort in knowing it's there. They may not need a banker today, but they trust that when the time comes, someone will be there to help. That unspoken promise is powerful.
Of course, banks will continue to open — and yes, close — branches as market demands evolve. But the sense of presence and permanence that a branch provides is something no app can match.
And that's exactly why branches, staffed with engaged and talented bankers, will remain one of the strongest competitive advantages any bank can have.
