What changing trends in branch traffics means for credit union leaders

• Branch counts have dropped 16% from their 2010 peak, with banks and credit unions losing a net 8,500 branches over the past four years — a trend accelerated by the pandemic.
• In-branch foot traffic has fallen more than 55% since 2019, signaling a permanent shift in how members choose to interact with their financial institutions.
•  Only 45% of account holders conducted any in-person branch activity in 2024, down from 53% in 2019 — meaning the majority of members rarely, if ever, visit a branch.
• Gen Z members visit branches just 3.6 times per year versus 4.6 for boomers, making digital investment critical to attracting and retaining the next generation of members.
• The pace of closures is slowing, suggesting the industry is nearing equilibrium — creating a strategic window for credit unions to right-size their branch networks and double down on digital.

____________________________________________________

The data is in, and branch traffic is declining for banks and credit unions. What does this mean for your branch footprint today and for the next few years?

The Scale of the Shift

Banks and credit unions collectively shed a net 8,500 branches over the past four years. The nationwide total now sits at roughly 95,000 — about 16% below peak levels from 2010, according to the ABA Banking Journal. While much of that closure activity has been driven by large commercial banks consolidating after mergers, credit unions are not insulated from the underlying forces at work.

The COVID-19 pandemic was a turning point none of us could have anticipated. Since 2020, the rate of branch closures across the industry has roughly doubled, contributing to a 5.6% decline in total branches nationwide. For many institutions, the pandemic forced a long-overdue reckoning with branch network efficiency, and members’ behavior changed faster than most of us expected it to.

Our Members Are Telling Us Something

The foot traffic numbers demand our attention. Average branch foot traffic has declined by more than 55% since 2019, according to the American Bankers Association. That is not a blip, it’s a fundamental reset in how members choose to engage with us.

Newsweek data from Q4 2024 shows that only 45% of bank account holders conducted any in-person branch activity in the past year, down from 53% in early 2019. For credit unions, whose value proposition has always been built on relationship and personal service, that statistic should prompt serious reflection. If members aren’t coming through our doors, how are we delivering on that promise?

The Generational Divide We Must Address

Perhaps the most strategically significant data point for credit union leadership is the generational gap in branch usage. Gen Z members visit branches an average of just 3.6 times per year, compared to 4.6 times for baby boomers. Overall, 52% of consumers visited a branch no more than four times in the past year.

This tells us two things simultaneously. Our longtime, loyal members still value and use our branches. But the next generation of members we must attract and retain has different expectations. Winning Gen Z and younger millennials means meeting them where they already are: on their phones, on their terms, and with digital experiences that match or exceed what fintechs and big banks are offering.

A Strategic Moment, Not a Crisis

There is reason for measured optimism. Branch closure rates have slowed for four consecutive years, suggesting the industry may be nearing equilibrium, as The Financial Brand has noted. The branch is not obsolete, but its role has is changing from a transaction hub to a relationship and advice center.

For credit union leaders, this is not a moment to simply follow where the data leads. It is a moment to lead. That means right-sizing branch networks, investing aggressively in digital channels, and redefining what exceptional member service looks like in a hybrid world.

The credit unions that get this balance right will not just survive the next decade — they will grow.