The Bankwatch

Tracking the consumer evolution of financial services

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BofA could eventually cut 10 pct of branches | SF Chronicle


This is a theme that is gathering steam. It is based on the reality that customers are using internet for their banking, and there is a high level of redundancy in offerring similar capabilities in physical locations. The counterbalance is of course the need to attract customers, new accounts and deposits which has traditionally been a branch activity.

That balance is shifting now and the tension between those two opposing forces will be ineresting to watch, as banks exectute strategies and consider their cost base.

BofA could eventually cut 10 pct of branches SF Chronicle

Bank of America Corp. could eventually shrink its 6,100-branch network by about 10 percent as consumers utilize other methods of banking, a company spokesman said Tuesday.

The move would be a pullback from the bank’s two-decade expansion, most recently under Lewis’ command, which expanded the bank from coast to coast.

[update] A quick look at Online Banking Report reminded me of an attribution I should have made, of Jims far sighted report in 2006.  In that report he rightly took a 40 year view.  Which Chairman at a bank is taking a 40 year view today ?

Online Banking Report: The Demise of the Branch (April 2006), for more on the long-term trends in the mix of branch and alternative delivery.

Written by Colin Henderson

July 28, 2009 at 16:35

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