The Case for Branches: Why Physical Locations Still Matter
Over the last decade, many routine banking tasks have conveniently migrated to digital platforms accessible through smartphones and computers. Despite the increased focus on digital banking enhancements, physical branch locations still play a key role providing U.S. banking customers and credit union members with an omnichannel banking experience. In fact, 45% of American bank account holders reported handling some banking matters in person at a branch location in the first quarter of 2025.
Although digital banking advancements have provided convenience, there are still enduring reasons why consumers continue to utilize physical locations. Financial institutions should prioritize branch locations for the invaluable benefits they provide, including personalized service, assistance with complex transactions, convenience, and strong community relationships.
Personalized Services
Many consumers value direct conversations with financial professionals, especially when receiving advice tailored to their unique situation. For example, in the first half of 2025, Ascend Federal Credit Union scheduled approximately 400 financial health checkups. This free offering provides members with valuable, one-on-one financial guidance – a service that many opt to do in-person at a branch. Through these checkups, members work with a certified financial counselor to build a budget, review their credit, and establish a plan to help them meet their financial goals.
Handling Complex Transactions
It is not uncommon for individuals who typically conduct their banking digitally to visit a branch when tasked with a complex transaction, including securing a loan, resolving account issues, or managing their investment portfolio. By visiting a branch, account holders receive real-time expert guidance personalized to their unique needs. For banks and credit unions, these moments are also opportunities to educate and introduce incremental services and products.
Convenient Banking Options
Many financial institutions are evolving to give their account holders more flexibility over how and when they bank. Ascend introduced Interactive Teller Machines (ITMs) to give members the option to conduct their banking transactions outside of normal business hours, 7 a.m. to 7 p.m., Monday – Saturday. This allows members to choose the banking experience that best fits their schedule and needs, while still connecting with a local teller.
Building Valuable Community Relationships
Branches operate as a tangible community touchpoint by demonstrating an institution's local investment. Making branches visible parts of the community helps institutions serve through partnerships with local organizations, nonprofits and educational institutions. This community involvement allows financial institutions to reach their account holders on a personal level and develop lasting relationships.
Depending on geographic location, a branch may be a community’s only source of financial support. In addition to providing traditional banking services, branches often serve as information hubs and financial educators. This dual purpose can be even more important in under-resourced areas or rural communities with limited internet access.
Although the number of branch locations has continued to decline over the past decade, they still fulfill critical needs for many U.S. banking customers and credit union members. The future of banking may be increasingly digital, but the unique value physical branches provide cannot be replaced.
Ascend is federally insured by the NCUA.
About the Author: Matt Jernigan, Chief Executive Officer at Ascend Federal Credit Union
Matt Jernigan is a seasoned leader and financial expert with over 20 years of experience in the credit union industry. He joined Ascend Federal Credit Union in 2005 as an internal auditor and has held multiple leaderships roles at the credit union before being appointed president and CEO in 2023. Under his guidance, Ascend continues to be recognized as a leading financial institution in Middle Tennessee, serving more than 250,000 members with accessible and innovative banking solutions. Matt is a licensed Certified Public Accountant and holds a degree in accounting from Middle Tennessee State University.