JPMorgan Chase & Co. (JPM), Capital One Financial Corp. (COF), Wells Fargo & Co (WFC) & The Future of The Bank Branch

This concept takes up less square feet than a typical bank branch and therefore makes sense for more urban neighborhoods. Because the location is smaller, it will have less maintenance expense. Staffing needs are lower, further cutting expenses.

Granted, this new store is an admitted test case for Wells and there are no immediate plans to take the concept nationwide. However, the upside is clear. Many consumers still desire the physical location to apply for a loan, meet with an advisor, or transact their business day to day.

Those same customers have other needs they may not need in a branch — bill pay services, depositing personal checks with a smart phone, checking and transfering balances.

With this hybrid model, Wells Fargo & Co (NYSE:WFC) and others will be able to blend the physical and digital customer experience, create a seamless and consistent customer interaction, and enjoy both the cost efficiencies of the technology with the community appeal of a neighborhood branch.

The Future is Foolishly Bright

The digital world exists to supplement and enhance our physical experience. The power of the internet is that it puts a near infinite amount of information and connectivity in your hands nearly anywhere in the world. But we still live in a physical world. The internet simply does not replace the world around us — it merely augments it in new and powerful ways.

As consumers, we should be excited by these changes in the retail banking model. We have unprecedented access to our financial information and assets. Banks are experimenting with new ideas and approaches, each one iteratively improving our banking experience.

For some, the old school branch network will be the preferred interaction with banks. For others it will be online. The beauty though, is that we will continue to have more and more options, more and more access, and ultimately, a better and better relationship with our financial institution of choice.

The article The Future of the Bank Branch in an Increasingly Digital World originally appeared on Fool.com.

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