Here's what branch banking may look like after Covid-19:
, 157 bank and thrift branches were closed in April 2020, while only 17 branches opened. Closing branches can be a cost-cutting measure for banks and credit unions, allowing them to streamline overhead expenses.
On the other hand, some banks are moving ahead with expansion plans to open new branches. That’s encouraging if you’re worried about branch banking disappearing altogether as a result of the COVID-19 outbreak. And at least one survey shows that consumers still want branch banking access. , just 3% of Americans said they would stop using branch banking altogether in response to the coronavirus pandemic. By comparison, globally, 24% of banking customers said they would be less likely to visit a branch. With demand for branch banking continuing, banks and credit unions will have to rethink how they handle in-person visits from customers. How banks and credit unions decide to handle reopening can vary from one financial institution to the next. The American Bankers Association has created a reopening matrix to help guide banks in their decision-making. The matrix offers guidance on things like:Enforcing social distancing measures between customers and staff inside branchesHealth screening measures for employees and what to do if an employee tests positive for COVID-19 These are guidelines, however, not hard-and-fast rules, and the ABA reminds banks that they should consult the laws in their state for guidance regarding things like social distancing and the wearing of masks. But, looking ahead, it’s possible that branch banking could feature any of the following, once states begin to fully reopen:Face mask requirements for both employees and customersReduced lobby hours Installation of plexiglass or other barriers to minimize the spread of germs between customers and employeesThe measures that you’ll see in banks may be similar to the ones retail stores and restaurants are introducing to keep both staff and customers safe. Banks and credit unions face an interesting challenge in trying to balance the needs of customers to do their banking in person while protecting the health of everyone involved. Since banks are considered essential businesses and were able to use their own discretion in closing, the same is true for deciding when to reopen branches. In other words, it’s up to individual banks to decide when to move ahead with opening and how to do it. That decision may be influenced by state guidelines for reopening. For example, in some states such as North Carolina, Phase One of reopening looked much the same as it did for businesses when stay-at-home orders first took effect. This meant continuing to limit customer access to branches and allowing people inside on an appointment-only basis.for customers during this time to help ease the side effects of not being able to visit a branch. Some of the measures banks have taken include:Waiving early withdrawal penalties for CD account holdersIncreasing mobile check deposit limits The Federal Reserve also has announced an interim final rule to suspend the Regulation D limit on savings account withdrawals. Ordinarily, you’d be limited to making six withdrawals from a savings or money market account per month. But to make it easier for people to tap into savings, this restriction has been lifted by the federal government. However, it’s worth noting that banks can still choose to impose a fee for exceeding the monthly limit. The COVID-19 pandemic has triggered financial worries for many Americans. For example, you may be wondering
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