Physical bank branches are disappearing. Does Hawaii need them? – Honolulu, Hawaii

Honolulu, Hawaii 2022-06-10 18:47:34 –

Honolulu (KHON2) — As more people choose digital convenience and avoid face-to-face interactions after a pandemic, businesses are seeing fewer people appear. Banks are one of the struggling industries and set a new record last year with the closure of retail stores.

According to a new survey, bank branch closure rates doubled during a pandemic.

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Between 2017 and 2021, almost one of the 10 branches was closed. Many of them occurred during the pandemic. According to the National Community Reinvestment Coalition (NCRC), of the 50 metropolitan areas with the most branches in 2017, Portland, Oregon, closed the largest percentage (20%) of local branches. ..

The number in Hawaii is incomparable to the number on the mainland, but Hawaii said 16 branches were closed last year. S & P Global Market Intelligence Data..

Dani Aiu, executive vice president of consumer banking at the American Savings Bank (ASB), told KHON2 that their plan is to reduce the physical footprint. Over the past few years, we have integrated several branch operations as more customers choose different banking methods.

ASB also offered useful digital options before the COVID-19 hit, but accelerated plans to enhance its online services after the world was closed.

“The pandemic is changing the way many customers bank, and more people are using our online and mobile banking solutions,” Aiu said. “Our goal is to facilitate banking, no matter how, when and where you choose to interact with us.”

Last year, ASB introduced four new digital centers in Honolulu Wal-Mart, Waipio Foodland, Laie Foodland, and Kapaa on Kauai.

“Unlike other places, businesses and customers can use full-service ATMs that can make deposits, withdrawals, remittances, etc.,” says Aiu. “We also have a local bank clerk who provides direct support.”

Although access has been lost in many communities, most of the bank branch closures involve the most well-known companies in the market, such as Wells Fargo and JPMorgan Chase. The former had the largest branch network in 2017, but has closed nearly 1,000 branches since then.

So what will banks look like in 20 years?

NCRC continues to face several trends, including bank mergers, advanced artificial intelligence, algorithms used to automate banking functions, and the growing need for online banking while saving costs in crowded areas. Said that it could affect.

However, physical retailers remain important to support small businesses within the community. Especially in rural and low-income areas, there are fewer branches offering services.

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As the pandemic continues to overcharge plans to close banks, the NCRC says physical banks are a key factor in the region’s economic outcomes and federal regulators to protect these affected communities. I am asking for. For more information, click here..

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