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While Stripe鈥檚 special-purpose license affords very limited new functionality, it鈥檚 still a reminder for legacy financial institutions to focus on their differentiators: personalized advice and human-centric service at the local branch. To understand which mobile features would set FIs apart from all digital competitors, read our report 鈥淯S Mobile Banking Emerging Features Benchmark 2024鈥� next.

Stayed consistent across touchpoints by phasing in the rebrand across various channels, including digital platforms, branch signage, and advertising. Engaged with customers and presented the refresh as a move to enhance the customer experience, focusing on more agile and innovative banking solutions. This aligns with our guide鈥檚 advice on offering better products/services through a rebrand.

The strategy: Santander aims to expand Openbank鈥檚 presence in the US as a full-service digital bank with branches. Meanwhile, Verizon wants to enhance its financial services portfolio, per its website. Through the partnership, Verizon customers can access this high-yield account, and they鈥檒l also get up to $180 off their Verizon bills per year.

The details: Centrust will retain its staff and branch, while SmartBiz Bank will operate digitally, leveraging its fintech platform to expand nationally, per The Financial Brand. SmartBiz Bank plans to broaden its funding sources by introducing a small-business deposit product by the end of 2025.

Plus, Capital One offers physical branches鈥攔are for a bank that still keeps everything fee-free and simple. Best Mobile App Experience: Discover. Discover has a highly rated app that supports mobile check deposits, Zelle transfers, and full account management. And Capital One and Discover just got the final green light to merge, which could mean this app鈥檚 technology will assist more customers.

And smaller FIs have the edge on personal banking鈥攚hen business owners walk into their local branches, they want someone who knows their name and their business. Plus, small businesses cite fewer fees at smaller FIs, which can make all the difference in their business鈥檚 success. What this means for FIs: Both big and small FIs have an opportunity here.

Equally important, FIs must communicate to customers what won鈥檛 change鈥攕uch as the products they know and love, their cards, logins, and the friendly faces they鈥檙e used to seeing at branch locations. And it鈥檚 not just about telling customers that change is coming鈥擣Is must seek initial buy-in by testing the changes.

Big Tech鈥檚 proximity to power has its advantages: Tech CEOs extended an olive branch to the incoming administration, and any sway over policy and regulatory changes may alter market dynamics.

Enhance branch experience with financial guidance: Branches remain essential for major financial decisions. FIs should create private, comfortable spaces for financial consultations, like Bank of America replacing teller windows with offices.

While over half of banking customers in Canada use bank branches at least once per year, the number and percentage of people who do so will start ticking down in 2026. This means traditional banks鈥� major differentiator of in-person service鈥攕omething digital-only banks can鈥檛 offer鈥攊s losing its power. Click here to view our full forecast for Canada traditional digital bank account openings.

Data insights allow for customized interactions across various channels, including in person at the branch. Increase efficiency and ROI. Data-driven marketing boosts efficiency by focusing on high-potential prospects and adjusting campaigns in real time for maximum impact. And demonstrating this to executives could help them understand the value of marketing鈥攁nd the budget behind it.

TikTok CEO Shou Zi Chew attended President Trump鈥檚 inauguration alongside other tech and social media CEOs, and the app鈥檚 notification thanking Trump for not enforcing the ban can be viewed as an olive branch between TikTok and the new administration.

Our take: These results don鈥檛 invalidate FIs鈥� competitive strategies involving expanding brick-and-mortar branches. Though most customers across all age groups prefer to bank digitally, many customers鈥攅ven younger ones鈥攙isit branches regularly to conduct banking transactions.

Natural disasters can damage or destroy banks鈥� physical branch locations. And beyond that, some of the impacted banks鈥� safe deposit boxes and their valuable contents may not have survived the fires, per American Banker. And, according to American Banker, climate change threatens to devalue up to 9% of global housing by 2050, amounting to $25 trillion in lost wealth.

Should we just let the branch go extinct? The end of summer in the US led us to pause and reflect on how banking continues to evolve under the influence of digitization and whether the branch still should have a place in banks鈥� and credit unions鈥� go-to-market strategies. Today, we鈥檙e kicking off a multi-part series looking at the current state of the branch, what consumers think of it, and how some banks are attempting to reinvent their branch networks to strengthen customer relationships.

JPMorgan is opening more branches and launching AI-powered tools to woo new customers.

Rethinking the customer experience within the branch: Financial institutions can learn a lot from other verticals that maintain both an online and brick-and-mortar presence.

It may be an olive branch for Gen Zers and millennials who may be upset over its decision to stop accepting Amex. It鈥檚 a win for Venmo鈥檚 monetization journey

They鈥檒l notice if they don鈥檛 see any young employees they can relate to at the branch, for example. And they鈥檙e twice as likely as other generations to consider DEI when choosing where to bank. Our take: Gen Zers鈥攚hen deciding on a bank鈥攎ay research which financial institutions once claimed to support DEI initiatives then later backed away.

How banks have responded: Aside from multiple banks ensuring employee safety by temporarily closing branches located in the fire zone, per American Banker, financial institutions (FIs) with a local presence have focused on providing relief to their impacted customers. Here are some examples of how banks have responded so far:.

Arkansas-based Southern Bancorp and Greater El Paso鈥檚 Credit Union provide free tax preparation services at their branches through the Volunteer Income Tax Assistance, per AMP news and their websites. Customers must meet certain income requirements.

Building and renovating branches to align with their new vision is bringing them new business.

What鈥檚 all the fuss about headless banking? There's lots of buzz lately about banks that separate banking services from any branches, apps or user interfaces. We take a closer look at this variation on BaaS.