Tuesday, October 15, 2013

World of Finance: Branch Banking-2

For example I live in a small town in New Jersey with less than 13k people but I have access to eight banks from where I can get loans, open an account and do all kind of activities since they are not just ATMS but full fledged branches because the people in my town (not me) are upper middle to rich class and that is why we are overbanked in our town. Do we need all these banks no since it is less than five square miles but again the business goes where the money is and that is how since I came to this about six years ago, there has been all this growth of bank branches. Although I know that all these branches are making profit but what about the people who are in towns where it is hard to find enough banks in proportion to their population. I believe that there are still certain segments of society who feel the need to have face to face interaction with a live person and this will go away anytime soon or maybe never. We may see the decline of branch banking but not completely vanish from our landscape. As cost cutting continues to grow and as more and more people do banking on the internet, you will left with ATMS in small towns and for more involved banking like loans, big deposits and other investment activities there will be banks only in big towns where you would have to travel.

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