Sep 18, 2024
There's no doubt that America's bank branch footprint is sinking and has been for years. In 2021, a net 2,928 branches shut their doors — the highest on record, according to S&P Global Market Intelligence data.
Then a curious thing happened: Net closings dropped to 1,854 in 2022 and again to 1,409 in 2023.
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The reversing trend highlights one fact of financial life: You're much better off carrying out certain transactions at a branch rather than online.
Certainly, banking via the web does offer tremendous convenience. Who would've thought a quarter century ago that you could whip out a smartphone and use its camera to snap a picture of a check and deposit it in seconds?
Yet the appearance of new branches — largely driven by big banks such as JPMorgan Chase — signals what consumers want. Branches still matter and security concerns undergird much of why that’s true.
Here are three banking actions you'll want to take in person rather than via your laptop or mobile phone.
Time-consuming applications
Conducting any prolonged financial activity on a computer, especially your laptop, can expose you to threats in a number of ways. First, if the Wi-Fi connection isn't secure, cyber criminals can easily snatch your information from the internet.
Thieves may also lurk as close as your coffee house, where you're exposed to "shoulder surfing" by a person sitting or standing behind you who’s out to steal login information or personal data. Hackers can also monitor your keystrokes (and hence swipe passwords and PINs) through accessing a laptop or desktop camera.
Online loan applications ask for your Social Security number and other personal information. That may not seem like a big deal until you digest this: It's now susceptible to hackers who grow more brazen in their attempts to breach personal data, literally by the day.
For example, if you unknowingly have malware such as a “banking trojan” on your computer, sign in to your online banking portal and apply for a loan, your most up-to-date credentials can be collected and later exploited.
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Addressing email security alerts
Banks have your back in the event of security concerns, but online thieves can be relentless. A common tactic is the “spoof” or “phishing” email. Such emails used to be borderline comical, with third-rate graphics and mangled spelling and grammar.
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Today, it’s a much different story. Fake bank logos and mastheads are frighteningly real, and the email addresses can easily fool people: yourbank.org instead of yourbank.com, for example. They’ll also act like they’re coming to the rescue. Typically, they “say they’ve noticed some suspicious activity or log-in attempts" or "claim there’s a problem with your account or your payment information," says the Federal Trade Commission.
You may be directed to a bogus “customer service number,” where a “friendly representative” walks you through steps to “fix” the problem. From there, it’s a few clicks to reset your password.
Stop before you get to that point. Now’s the time to visit your trusty branch and show a representative the email. If it’s a spoof, you can delete it after reporting it with the added satisfaction that you may save other customers from getting duped.
Multi-step transactions
Even if you have airtight online security, things can still get fouled up. Let’s say you want to create multiple savings accounts for your kids, get fee waivers and set those accounts up with two credit line transfers from separate cards. That’s complex and leaves plenty of room for error. And if you need to straighten things out by chat because there’s no customer service phone option, you could be headed straight for a fate worse than voicemail hell.
Branches have a clear advantage over online banking in that they foster personal connections. When you get to know the local branch manager, especially at a community bank, you enjoy back-and-forth that, among other things, can land you better rates and terms than what you'll get online from the same institution. There’s even a name for this: “relationship banking.”
Accenture's latest global study of 49,000 consumers found that in the U.S., 63% turn to the branch mainly to solve specific and complicated problems, while 67% like seeing branches in their neighborhood.
And unless you count the computerized kind, which online banking site has the possibility of cookies at the welcome desk?
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Lou Carlozo is a freelance contributor to Moneywise.
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