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I don't understand the economics behind bank branches. Some of the best real estate by me is taken up by giant bank branches that are always mostly empty with a
by suzzer99 7mo ago
I don't understand the economics behind bank branches. Some of the best real estate by me is taken up by giant bank branches that are always mostly empty with a few bored employees inside. And they open new ones all the time. So it's not like they're stuck in some lease.
- fragmede 7mo agoBut when those employees are meeting with clients, they create money out of thin air by making loans, which then is used to pay for goods and services such as leases.
- Animats 7mo agoRight. What banks do is sell loans. That's the profit center. Teller windows, vaults, and cash handling are all low or no revenue cost items. So newer bank branches look like car dealership offices. There are many little glass rooms where you sit down with a bank employee and discuss loans and other financial products. That's where the money is made. There's a small area in back with traditional tellers. It's not where the money is made.