Bank of America Corp (BAC), Wells Fargo & Co (WFC): Three Reasons These Banking Relics Are Still Relevant

Though it’s not inside the U.S., Citigroup Inc (NYSE:C)‘s recent announcement of a new branch location in Iraq is one of the best examples of this important trait of bank branches. As one of the first American firms to reenter the still-unstable country, it may prove to be a big draw for Iraqi customers, which would be good news for Citigroup Inc (NYSE:C) as it enters a new economy that’s expected to grow 9% over the next year.

3. Special functions
One of mobile and online banking’s biggest limitations is the winning ticket for the longevity of bank branches — non-traditional banking functions. For example, Wells Fargo & Co (NYSE:WFC)’s test branch mentioned above is not suited for commercial business customers, but instead is solely focused on individual consumer banking needs.

Of the Big Four banks, JPMorgan Chase & Co. (NYSE:JPM) is bucking the trend of selling locations and has actually been adding to its footprint in the past few years. The bank has increased its online presence like its rivals, but it is also finding a new way to present physical locations to its clients. With the consolidation of its consumer products into one division, the branches offer a location for customers to seek advice from bankers. The company has stated that the main purpose of branches is no longer for making transactions, but instead for asking for advice, focusing more on customers’ needs than on selling products.

Endangered species?
With all of the changes occurring in the banking world, it’s not hard to envision a future without physical bank branches. But that time is still a long way off. Technological advances will continue to favor the self-serve trend, and banks will adopt new options for their tech-savvy customers. In the meantime, though there is less of a need for so many branches, they still play a necessary role in banking.

If you like the old standard of bank branches and tellers, don’t worry that they will disappear from the map entirely. Though the convenience of numerous locations in your area may soon be a thing of the past, bank branches will survive for the foreseeable future.

The article 3 Reasons These Banking Relics Are Still Relevant originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends Bank of America, BofI Holding, and Wells Fargo. The Motley Fool owns shares of Bank of America, BofI Holding, JPMorgan Chase, and Wells Fargo.

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