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Analysis of bank closures in the US, conducted by Fintech Self Financial, has revealed that physical bank branches are set to be wiped out by 2034 if they continue on current trajectories.
The new study analyzed over 8 decades of official government data from 1934 up to 2020 to discover changes in banking and how this has affected the average American.
In light of banks being closed due to COVID-19 restrictions and lockdowns, Fintech Company Self Financial used government data and insights to show the states where banks have been closing the fastest. The study also surveyed 1,114 US residents on the state and future of banking, and their attitudes towards banking in a branch.
The study found that: Current trends suggest that all bank branches could be closed by 2034;
- Bank branches in the US have fallen by 6.52% since 2012, with the rate of closures since 2012 doubling every 3 years;
- 1 out of every 15 bank branches open in 2012 is now shut;
- 46% of Americans believe that the current way we bank needs to change;
- Access to cash (53.7%) and in-person advice (50.4%) are the two most popular reasons for Americans to stick to using physical banks;
- More than half (55.2%) of Americans believe online banks will soon outnumber traditional physical banks.
The study also sourced expertise from a range of experts in the sector. They agreed that the following changes will happen to banking in the coming years:Â
- Less face to face interaction, with replacements being artificial intelligence;
- AI financial advisors will cut waiting and approval times for products;
- There will be more ATMs across the country which will offer more services;
- Biometric security will become more normalized and adopted in more places;
- Bank branches will reduce as AI replaces them;
- Smart technology will feed data into financial products for the public;
- Mobile apps will be able to offer more banking services;
- Feed will be reduced due to reduced overheads.
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