How are Bank Closures an Opportunity for Retailers?
BFC Enterprises • December 20, 2023
Banks across the United States are rapidly closing branches, leaving many neighborhoods without convenient access to in-person banking. This trend presents a valuable opportunity for retailers to step in and fill the gap, attracting more foot traffic and sales.
The Rise of Banking Deserts
Major
banks closed over 3,000 branches in 2022, while only opening around 1,000 new ones. Financial giants like JP Morgan Chase, PNC, and Citizens Bank recently
closed 64 locations in just one week this past November.
In total, the number of counties in the US without a single bank or credit union branch has climbed from 700 in 2012 to 1,200 today. These areas are essentially “banking deserts” where consumers lack convenient access to banking services.
Consumer Demand Physical Access
Despite the digital banking boom, most people still want convenient access to physical branch locations and ATMs:
- 87% of consumers want a bank branch located close to their home or workplace
- 90% regard easy access to fee-free ATMs as critical
With banks rapidly closing locations, they risk frustrating and losing customers who rely on neighborhood branches to handle their finances face-to-face.
Retailers Filling the Banking Void
As banks vacate their branches, forward-thinking retailers have a prime opportunity to fill the gap in community banking access. By installing convenient and compliant
on-site ATMs, stores can appeal to financial institutions as a
key partner - and essentially become destinations for basic consumer financial services.
When a neighborhood bank branch shuts down, the bank or credit union’s
partnership with a local retailer lets them direct their account holders to trusted retail partners to handle their ongoing ATM needs. This maintains customer satisfaction while driving more foot traffic to partner retailers.
Of course, one of the fastest ways to take advantage of both reliable ATMs and bank partnerships is with a
reputable ATM provider. These companies already work regularly with banks, credit unions and ATM manufacturers for a variety of programs – and can help retailers launch lucrative on-site
ATM programs quickly.
Having an ATM can Boost Sales Through Added Foot Traffic
When managed strategically, retailer-hosted ATMs don’t just provide convenient community banking access. They can also substantially boost in-store sales. Industry research shows that roughly 20% or more of the cash someone withdraws from an ATM is typically spent at that same retail location.
Moreover, consumers tend to be creatures of habit, returning regularly to the same trusted ATM sites to fulfill their banking needs. This translates into a steady stream of foot traffic and sales for retailers who install compliant and well-maintained machines.
With smart
ATM partnerships in place, retailers can benefit from the mass bank branch closure trend. This unique opportunity won't last long though.
Contact BFC Enterprises now to get a free ATM for your business and talk to us about how a partnership with a bank or credit union can help you increase sales.
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