what is branch banking 
branch banking is the operation of storefront locations away from the institution s home office for the convenience of customers since the 1980s branch banking in the u s has gone through significant changes in response to a more competitive and consolidated financial services market one of the most significant changes is that since 1999 banks have been permitted to sell investments and insurance products as well as banking services under the same roof history and current landscape of branch bankingthe riegle neal interstate banking and branching efficiency act of 1994 authorized well capitalized banks to acquire branch offices or open new ones anywhere in the united states including outside their home states 1 at that time most states had already passed laws enabling interstate branching then in 1999 congress repealed laws that forced banks to keep their investment services separate from their banking services 2 those two actions combined led to the current proliferation of branch offices that are dotted around the u s after the financial crisis of 2008 2009 the banking industry went through a consolidation phase the branch bank for most americans now means one of the big four banks jpmorgan chase co bank of america wells fargo or citibank more recent innovations such as internet banking services and mobile banking apps have dramatically changed the banking landscape according to a survey conducted by morning consult on behalf of the american bankers association mobile and online banking increased considerably after the covid 19 pandemic as of 2021 44 of bank consumers turn to mobile apps compared to 33 before the pandemic and 26 use a computer or laptop to manage their accounts compared to 24 before the pandemic 3in addition the covid 19 crisis increased the rate of bank branch closures in 2020 just under 3 700 bank branches shut their doors 4 however banks are constrained from closing some branches by the terms of the community reinvestment act of 1977 which requires banks to make an effort to provide services to low and moderate income neighborhoods advantages of branch bankingbranch banking allows a financial institution to expand its services outside of its home location and into smaller storefronts that function as extensions of its greater operations for some institutions this can be a cost saving method it allows smaller offices to provide key services while larger locations may have additional offerings for customers branch banking offers the added value of interacting with someone in person a richer experience and connection that can t be replicated by digital channels although many customers turn to digital channels for simple banking tasks like checking an account s balance or making a transfer they are visiting branches for those services that can t be provided online like withdrawing cash or using a safety deposit box other advantages of branch banking include the ability to complete complex transactions get information on specialized financial products or receive financial advice branch banking networks have evolved into multi state financial service networks that allow depositors to access their accounts from any banking office unit banking vs branch bankingunit banking refers to a single usually very small bank that provides financial services to its local community typically a unit bank is independent and operates without any connecting banks or branches in the area however not all unit banks are independent even if they do not share a name with a larger banking entity there are some banks that retain a familiar name even though they are owned by a larger holding company 