A regional bank is considering a proposal to close its physical branches in low-traffic rural areas and replace them with mobile-only banking, supported by a phone hotline for customers who need assistance. Proponents argue that maintaining a branch in a low-traffic area costs far more per customer served than in a busy urban branch, that most routine transactions such as balance checks and transfers are already conducted through the bank's mobile app rather than in person, and that the savings from closing underused branches could fund better mobile app features for all customers.
Based on a one-year trial in which one rural branch was closed and its customers were moved to mobile-only banking, the bank's leadership has concluded that closing underused rural branches network-wide would reduce operating costs and improve the mobile app for all customers, without significantly reducing customer satisfaction among affected customers.