Banks close or downsize branches as the focus shifts to new technology.

• Position: MARKETING NEWS

THE TREND IN BRANCH BANKING is toward fewer and smaller branches that are less costly to staff and which employ advanced technology, according to a recent report from SNL Financial, New York.

The latest FDIC Summary of Deposits data for June 30, 2013, confirms that the total number of branches has declined during the last four years to 96,341, down from a high of 99,550 recorded in 2009.

SNL cited Bank of America's recent announcement that it will roll out smaller branches featuring new technology as evidence of the trend. The bank's new "express branches" will allow customers to interact with tellers via video screens outside of standard business hours. The first such branch, which opened recently in New York, is about 2,300 square feet, which is smaller than branches of the recent past, which have ranged in size from 3,000 to 6,000 square feet, SNL notes.

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