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Why is this a surprise? Most banks are overstaffed in the wrong areas and have too big a real estate footprint. It's not just a BOA or Wells Fargo issue, I see
by ilamont 3y ago
Why is this a surprise? Most banks are overstaffed in the wrong areas and have too big a real estate footprint. It's not just a BOA or Wells Fargo issue, I see it in every local and regional bank in my area. All of them built up in high income zip codes just as millions of people shifted to online and mobile banking, and now they have nearly deserted lobbies and teller counters. Mortgage operations have been centralized, and suffer from boom/bust cycles tied to interest rates and supply fluctuations.
- JackFr 3y agoThe reason why you see them built up in the high income zip codes is because branches are almost completely out of the business of regular teller operations of years ago which as you correctly point out have moved largely online. Instead branches exist to move high margin services and wealth management product to high income customers. That isn’t to say the big banks don’t have a real estate problem - they do but it’s more the back office than it is branches.
- alphabettsy 3y agoI’d love to visit an overstaffed bank. Each time I need to visit a branch I’m waiting for the single teller while the manager tries to sell me a credit card or mortgage.