The digital revolution is creating a fundamental transformation. Accelerated by market forces such as the COVID-19 pandemic, FIs are adapting fast to meet consumer demands for convenience, digital engagement, self-service, and fee-free.
As they work through this process, FIs re-evaluate what is and is not critical to their channel infrastructure. The transformation visibly embodies the shrinkage of branch networks, reduced operational costs, and redeployed capital to digital initiatives. The pandemic brought all three of these activities into sharp focus, which led to mass branch closures, some temporary and some permanent, while highlighting the need to run lean.
As branch lobbies and ATM vestibules closed, consumers in less populated areas had to travel much longer distances to visit an ATM at another branch. Also, urban ATM users found themselves in long lines for the ATMs that were still accessible. This inconvenience prompted FIs to rethink channel distribution strategies that offer greater flexibility for account holders to enjoy convenient and surcharge-free access to their cash.
Networks like Allpoint have become a critical component of a bank’s omnichannel strategy and an essential face for its account holders. The network helps FIs grow market presence with no capital investment, eliminates new ATM deployment expenses, reduces overhead costs, and helps them attract new customers who crave choice.