Bank branches may soon see the same fate as retail stores

A digital world makes experts re-examine the need to actually sit with a teller

12,000 brick-and-mortar stores already shut down and 4,000 more on the way, the trend that has ravished the retail economy has not made it to banks yet.

Bank of America
Washington is about to consider legislation that will impose a 36 percent interest rate cap on loan options which could adversely impact the Black community. (Photo by Scott Olson/Getty Images)

With 12,000 brick-and-mortar stores already shut down since 2010, and 4,000 more on the way, the trend that has ravished the retail economy has not made it to banks yet.  But that could change.

Data shows while Amazon’s market place has crippled the actual foundation of stores and will likely do more damage, banks are able to keep in operation, for now. In fact, in a 10-year span, there have not been many bank closures. The US sat at over 80,000 FDIC banks and now has only dropped down to slightly under that number.

Read More: Major retailers start online payment program for low-income shoppers

Forbes celebrates the success of keeping branches open to the interest of a consumer in keeping their money. In a closer comparison, banks have been able to stay alive despite the advancements of technology in their field. Those include the likes of person-to-person payments and additional apps like Venmo and Cashapp to bypass any hurdles and save users money. Those mediums have also collaborated with retailers to complete direct service and pay options not previously available through dated means.

Read More: BREAKING: Mega retailer Amazon ditches plan for New York City headquarters

While bank branches are staying alive currently, that may not be the case for long. Forbes cites a lack of traffic in branch to the ease of not having to visit a teller to take care of your business. There is no longer the need for visiting a branch to secure a loan as digital means have become more accurate ways to calculate rates. The development of technology and the products they sprout allow users to not have to leave the comfort of their home and can the tasks can be completed by a couple of clicks on a smartphone.

Read More: Payless suffers in the age of Amazon, retailer to close all 2,100 stores

The belief is bank branches won’t be completely killed off, however, the amount of the branches will drop over time, opposed to the sustainability they have experienced so far.