For years, the story of bank branches seemed fairly straightforward: Digital banking was growing, branch traffic was declining and physical locations were slowly disappearing. But that story may be changing. In a recent American Banker article, “It’s official (sort of): the bank branch is back,” Paul Vigna points to an intriguing reversal. After roughly two decades of decline, the number of U.S. bank branches has increased for three consecutive quarters. In the second quarter of 2026 alone, banks opened 13 more branches than they closed, and over the three-quarter period, openings outpaced closures by 120 locations.
The Value of the Branch Is Changing
It’s too early to call it a permanent comeback, but banks clearly still see value in being physically present in the communities they serve. And the value of that presence may be changing. Vigna points to a recent JPMorgan Chase ad in which a customer frustrated by technology finds relief in talking with a real person at his local branch. Customers may not need a branch for every routine transaction anymore, but when they do come in, they may be looking for something digital channels have a harder time providing: someone who can listen, understand what they need and help them figure out what comes next.
A New Branch Strategy Needs a New CX Strategy
That makes the quality of the branch experience more important, not less. Customers who primarily bank digitally may visit less frequently, but the interactions that bring them through the door can be important ones: opening an account, solving a problem, discussing a loan or making a significant financial decision. Traffic and transaction data can tell a bank how customers use its branches, but they can’t tell the whole story. Was it easy to get help? Did the employee understand the customer’s needs? Did the customer feel listened to? Was the issue resolved? Did the interaction strengthen the relationship?
What Are Customers Coming Back To?
For community banks and credit unions, the return of the branch is an opportunity to reconsider what makes the physical experience worth the trip. Customer feedback can help institutions understand what customers value when they walk through the door, where the experience falls short and which interactions have the greatest impact on the relationship. The goal isn’t to recreate the branch of 20 years ago. It’s to understand what a great branch experience should look like today. Because if the bank branch really is coming back, the more important question may be: What are customers coming back to?