How Low Can Bank Branch Locations Go?

Banks are consolidating and optimizing locations, according to JLL’s 2017 Banking Outlook.

HOUSTON—Consumers are more mobile than ever, and the banking industry shows just how quickly innovations alter consumer behaviors. It took decades for ATMs to be accepted, but now mobile apps and fintech define the entire future of banking real estate.

While the recession forced banks to tighten operating costs and halt branch growth, mobile banking picked up momentum. As a result, banks are consolidating and optimizing locations. JLL’s 2017 Banking Outlook reveals that the recession and consumer technology have led to a near-8% decline in US branch banks since 2009, according to the FDIC. At the same time, new branches are still being built to fulfill market needs, indicating a robust and evolving industry.