“The Death of Banks,” a new study cited in a Fox News report, suggests that extrapolating forward the current 6.5% decline in the number of neighborhood brick and mortar banks that have closed since 2012 means eventually all banks will die.
Perhaps, or maybe not.
The banking industry has an air of staid permanence and heavy marble that suggests a durability that resists change, but the times they are a changing and banks, beyond easy view, are adapting.
”One of the things banks are looking at now is how to get engaged with the crypto market. In six months, they’ve done more in terms of innovation than banking has in ten years,” says Michael Smith, President of Avidian Wealth Management. True, but in all fairness ten years ago Apple introduced Apple Pay, which introduced a new touchless currency that has had minor impact in how we bank, but crypto is getting all the glory and attention today and banking is watching. Instant payments, cryptocurrency, Blockchain, and anytime-anywhere service is where things are heading, and as with many stores, the future business model involves fewer buildings. “And I think they realize that’s the way the trend is going. ‘The trend is your friend.’ They’ve seen what’s happening in retail and being behind that curve can be real dangerous,” Smith adds.
So as the industry continues a technological evolution expect to see a lighter footprint than we’ve grown accustomed to, but out of sight doesn’t mean out of business. Like so much else, it’s just gone digital.
photo: Getty Images