Breaking Banks How Will U.S. Banks Survive the Branch Decline? Branch Tomorrow
Oct 2, 2025
Join banking leader Jim Marous as he sheds light on the crumbling branch model in the U.S. Marous discusses the staggering decline in physical branches since 2008 and reveals how digital transformation is reshaping customer expectations. He contrasts the approaches of big banks versus smaller institutions and explores why some still cling to traditional branches. The chat also dives into emerging technologies like agentic AI and the critical need for banks to adopt digital-first strategies to stay relevant in a rapidly evolving landscape.
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Branches Are Economically Unsustainable
- Branch networks in the U.S. peaked in 2008 and have been declining, accelerated by the pandemic and digital adoption.
- Brett King estimates 60–70% of U.S. branches are now loss-making and unsustainable long-term.
Big Banks’ Branch Strategy Is Contextual
- Large banks like Chase still open branches in the U.S. while acquiring customers digitally overseas.
- This shows branches are a strategic, not universal, choice tied to scale and legacy metrics.
Younger Consumers Prefer Wallet-First Banking
- Younger generations in many markets primarily bank via wallets and apps and often never carry cards or use cash.
- The U.S. lags global contactless and digital adoption, making branches feel stickier here.
