There's still room for branch expansion, new study says.

• Position: MARKETING NEWS - Brief article

The recent closure of thousands OF BANK BRANCHES is not the result of a structural replacement of branches by online channels, according to a new Bancography report entitled, "Outlook: 2015, Deposit and Demographic Trends."

While the number of branches nationally is below its peak in 2009, the industry still supports 110,000 bank and credit union branches. This suggests that the lower branch count is a reflection of the economic downtown, merger activity and the rationalization of pre-crash excesses rather than a dramatic shift in channel usage, the report says.

Bank consolidations following the financial problems of 2008 to 2009 has increased the concentration of branch ownerships. The ten largest branch networks now comprise one-third of all U.S. branches. The 50 largest branch networks account for more than half of U.S. bank branches.

The report also surveys national deposit growth trends, unemployment and balance growth...