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In-branch transactions are in steady decline at American banks as call centers, online options and mobile apps surge in popularity.
As a result, U.S. banks have shuttered nearly 5,000 branches since 2009, ending a seven-year growth spurt.
But despite the high costs of real estate and staffing, local banks continue to hold onto their large retail networks and, in some cases, add to them. The strategy: Give customers everything they might want and hope for the best.
"While a significant portion of our transactions are electronic, there is still the element of convenience and the need to serve customers on a person-to-person basis," said Stuart Lubow, president and CEO of Great Neck-based Community National Bank, which is planning to open its 11th branch, in Hewlett, this year. "You need to have a clicks-and-mortar philosophy."
Fewer bank customers prefer to use the branch for routine transactions than just a few years ago, according to the U.S. Multi-Channel Customer Survey by the research firm Novantas. In 2012, 54 percent of respondents preferred the branch when making deposits, compared with 70 percent in 2006.
Only a quarter opted for the branch when withdrawing funds, down from 41 percent six years earlier. In that span, the amount of customers choosing the branch to resolve issues (53 vs. 35 percent) and to open additional accounts (78 vs. 53 percent) also fell sharply.
Yet, branches remain important to both new and existing customers.
"Having a branch near where I live" is the top criteria when consumers choose a new bank or credit union, with proximity important to 87 percent of respondents, according to Novantas. And 75 percent of Chase customers use a branch at least once a quarter, according to the bank.
A considerable network of strategically located branches is key to TD Bank's marketing claim that...