Bank branches are changing: Why cash is losing importance and the future lies in large advice centers

Bank branches are changing: Why cash is losing importance and the future lies in large advice centers

According to a report by www.stimme.de, bank closures are an emotional topic. VR-Bank Heilbronn Schwäbisch Hall is currently receiving a lot of criticism for its announced course of closing four branches and dismantling numerous ATMs and all account statement printers. This step is part of a consistent development that aims to pool customer capacities and focus on large advice centers.

The branch no longer has a future, especially in rural areas, as it cannot replace a local social meeting point. Due to digital progress and the increased use of ATMs, the physical presence of a bank branch is no longer necessary for many services. Despite the closure of bank branches, the supply of cash is not at risk, as most people can withdraw cash without any problems.

The importance of cash will continue to decline as more and more people realize that it is more convenient to pay with a card or smartphone. This change comes with a fundamental shift in customer expectations. Many young people have never seen the inside of a bank branch because they do their banking digitally.

The industry is reacting to this development by foregoing banking transactions in physical branches and instead offering digital and telephone advice services as well as large advice centers. Ultimately, this is a sensible move that allows customers to conduct their financial transactions in a modern and convenient way.