The Future of Local Banks: Balancing Physical Branches & Digital Banking

Despite the increasing emphasis on digital banking, current data reflect the enduring relevance of physical branches for community banks. Sam Wilmes, Digital Managing Editor for BankBeat, reported on the continued viability of brick-and-mortar banking for this financial services sector. 

Wilmes reports on the trends between physical branches and digital banking for community banks. While the shift toward online account openings has become prevalent, the fact that most accounts are still opened in branches highlights the ongoing importance of these geographic locations. 

Bravera Bank Adapts Branches to Hybrid Banking  

Bravera Bank, Dickinson, N.D., is a notable example of a financial institution adapting its business model to a hybrid banking approach that meets both traditional and modern needs. 

In its hybrid banking arrangement, Bravery Bank’s leaders focus on creating an environment that facilitates both customer interactions and internal collaboration. In the process, it seems to have crafted a successful equilibrium between the two business models, evidenced by growth through cross-referrals. 

In addition, the hybrid banking strategy of reducing square footage while enhancing services and community engagement demonstrates a forward-thinking stance on branch operations. 

Why Physical Branches Complement Digital Banking 

Robb Rempel, Executive Vice President of Haberfield Associates (a Lincoln, Neb., consulting firm) underscores the importance of maintaining a balanced approach between digital capabilities and physical branches. 

While virtual offerings are crucial for competitiveness, it’s clear that many customers still value the personal touch and convenience provided by in-person interactions. This observation emphasizes the need for community banks to invest in both digital innovation and the enhancement of their traditional branch networks. 

While digital banking is undoubtedly important, community banks should not overlook the continued significance of physical branches in fostering customer relationships and serving the needs of local communities.  

Visit BankBeat for the complete details about finding the right balance between digital convenience and personalized service that local bank branches offer.